LinkAja announces strategic investment from Grab

By Edil Corneille

Today, South Jakarta-based LinkAja, a financial technology (FinTech) app, announced a strategic investment from Grab, Southeast Asia’s super app. Grab led the series B stage as a minority shareholder. Telkomsel, BRI Ventura Investama and Mandiri Capital Indonesia also provided the funding.

The US$ 100 million investment will be used to accelerate LinkAja’s growth focusing primarily on middle-class/ aspiring consumers and MSMEs in Indonesia.

Starting its operational business on June 30, 2019, LinkAja is the result of the synergy of State-Owned Enterprises (BUMN) in Indonesia. LinkAja has mentioned that it has continued to present electronic payment services for users and partners, as well as building a FinTech ecosystem. The company currently has over 58 million registered users, with more than 80 per cent of its users coming from tier 2 and 3 cities in Indonesia.

Haryati Lawidjaja, President Director of LinkAja enthused, “We are very enthusiastic about joining Grab as one of our shareholders. We are sure that this strategic partnership supported by investment and the power of Grab’s technology will strengthen LinkAja’s services in providing effective solutions to provide access to finance and the economy for the Indonesian people. We are also very grateful for the trust and support of all shareholders and the Ministry of BUMN. This Series B investment from Grab, Telkomsel, BRI Venture and Mandiri Capital is a form of trust in the business model and the initial achievements that LinkAja has achieved in one year since LinkAja was founded.

“Grab, together with the related Ministry of BUMN and BUMN, are committed to helping the growth and development of the startup ecosystem in Indonesia. Cash is still the main medium of exchange in Indonesia, and there are millions of Indonesians who are still not covered by the traditional banking system. We chose to invest in LinkAja because together we can accelerate our goal of accelerating financial inclusion in Indonesia. The strategic collaboration between LinkAja and our digital ecosystem, which includes OVO and Tokopedia, allows us to provide a variety of cashless services for all levels of Indonesian society safely, comfortably and easily accessible, “said Neneng Goenadi, Managing Director of Grab Indonesia.

In this investment fundraising, Credit Suisse and Hiswara Bunjamin & Tandjung acted as exclusive fund placement agencies and legal advisors for LinkAja, while Hadiputranto, Hadinoto & Partners acted as legal advisors for Grab.