China’s JD.com Inc. (NASDAQ: JD) has decided to invest in an Indonesian ride hailing startup called Go-Jek to increase growth in Southeast Asian mobile based services. Go-Jek’s investors such as KKR & Co LP and Warburg Pincus LLC as well as a venture capitalist firm called Sequoia Capital has raised about $100 million from JD.com. $1 billion was also raised form existing and new investors in the latest funding round with pre money valuation totaling up to $2.5 billion.
Go Jek mainly operates in Indonesia and is a ride hailing app that has grown to be a large potential market for Grab and Uber Technlogies Inc. The mobile payment business Go Pay is growing at a fast pace and the company is also looking to develop a food delivery business.
JD.com’s investments outside of China are all mostly accounted by Indonesia. Southeast Asian investments by large tech firms in China are looking to boost their presence in a region that many expect to produce more high valued tech startups. Other firms such as Alibaba Group Holding Ltd and Didi Chuxing have also been looking to invest in that part of the country which is home to 600 million people and some of the world’s fastest growing economies.