Potential Startup “Unicorn” Produce Subsidiaries with High Valuation

GoPay is rumored to have held the title "unicorns". It is encouraged filing new company first released Deal Street Asia which mentions the valuation pre-money at least $4 billion. Our sources confirm that there is a portion of Series F funding Gojek (including from Facebook and PayPal) that goes directly to GoPay.

According to the filing Gojek reportedly still owns around 70% of GoPay shares, while the rest is owned by external parties. GoPay itself to DailySocial stated not to comment on rumors in the market.

Previously, platform video on-demand GoPlay, a subsidiary Gojek others, too, have earned independent funding.

Not only Gojek

Startups unicorn Other local companies also manage subsidiaries to expand their business ecosystem. Traveloka has been agile in working on the financial business since the beginning of 2019. Rapid product growth paylater encourage companies to plan new schemes, including operating companies finance alone as a partner Actioncalendar, that is PT Caturnusa Sejahtera Finance.

Caturnusa is rebranding from PT Malacca Trust Finance, a financial company created by PT Batavia Prosperindo Finance Tbk which was sold to PT Hermes Global Ventures. Hermes Global is known to have affiliation with Traveloka.

This strategy did prove successful before the pandemic hit. Armed with the existing transaction statistics, Traveloka Group President Henry Hendrawan is confident in bringing the company's financial unit into unicorn in 2020. Unfortunately, Covid-19 puts enormous business pressure on the travel segment, so many adjustments have to be made by companies in this sector, including Traveloka.

Startups unicorn On the other hand, Shopee (though not entirely based in Indonesia), also uses a similar method. In order to make it easier for consumers to transact, Shopee developed ShopeePay products and ShopeePayLater.

The financial unit is the key

If you look at the reviews above, it can be concluded that the financial unit is an important concern for each company. The unit supports transactions to the main service with a very large nominal. Companies tend to start choosing cash flow management to do it themselves – through its subsidiaries, instead of allowing too many transactions to pass through platforms outside the ecosystem.

Ovo's success in becoming a unicorn startup legitimizes that the digital payment business has great opportunities in Indonesia – Ovo itself was chosen to support transactions in Grab and Tokopedia (and a number of other apps).

Menurut Fintech Report 2019, the top four most popular digital payment platforms are Ovo, GoPay, Dana, and LinkAja. Temporary paylater widely used in Ovo, Gojek, Traveloka, and Shopee.