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Facebook, PayPal Join Google As Investors In Indonesian Tech Giant GoJek

Neer Varshney

Facebook Inc. (NASDAQ: FB) and PayPal Holdings Inc. (NASDAQ: PYPL) have invested in Indonesian ride-hailing giant GoJek, TechCrunch reported Tuesday.

What Happened

The two companies didn't disclose the amount they invested or the stake they have acquired in GoJek as a result.

GoJek told TechCrunch that Facebook and PayPal participated in its Series F funding round, which brought total investment to date at more than $3 billion.

Founded in 2009 as a ride-hailing company, GoJek has expanded to food delivery, shopping, and mobile payments in Indonesia.

"This investment underscores Facebook's commitment to serving small businesses and helping bring them and their customers into the digital economy," Matt Idema, Chief Operating Officer at Facebook subsidiary WhatsApp, said in a statement.

PayPal describes its investment as a "positive step in our journey towards becoming the worldwide payments partner of choice," TechCrunch reported.

Why It Matters

This is the second major international investment Facebook has made this year after it had acquired a nearly 10% stake in India's Jio Platforms for an investment of $5.7 billion in April.

Indonesia is one of the largest markets for Facebook in Asia after India, and the investment follows a Reuters report in April that Facebook was looking to get approval to launch a payment services company in the country in partnership with local firms.

GoJek competes with Singapore sovereign state fund-backed Grab Holdings Inc. for market share in Southeast Asian countries.

Google parent company Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG), China's Tencent Holdings Ltd. (OTC: TCEHY) have participated in previous funding rounds for the Jakarta-based company.

Price Action

Facebook shares closed about 0.4% higher at $232.72 on Tuesday and traded a few cents lower in the after-hours session.

PayPal stock closed 1.9% higher at $157.49 per share the same day, and traded slightly higher in the after-hours at $157.91.

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