Southeast Asia’s super app Grab is moving even further into the payment solutions space this week. The company has more than doubled its stake in e-wallet app OVO.
Grab’s stake in Bumi Cakrawala Perkasa, OVO’s parent company, has gone from 39% to 90%. Currently, the remaining 10% of OVO is split equally between two firms, IDE Teknologi Indonesia and Cakra Finansindo Investama, which both claim a 5% stake.
“We are pleased to complete the first part of a wider exercise to restructure our ownership. We welcome a greater commitment from Grab,” said an OVO spokesperson. “We’re working in close consultation with the regulators to complete the ownership restructuring process, and are confident this will allow us to better serve the financial services needs of Indonesians.”
OVO was launched as a corporate rewards system for Lippo Group and in 2017 expanded to e-payments. According to data released last year from Bank Indonesia, OVO processed 37% of all digital wallet transactions in Indonesia, marking the largest share in the nation.
According to Nikkei Asia, Grab will likely bring more Indonesia-based investors to acquire stakes in OVO. That is because the region’s central bank, Bank Indonesia, stipulates that at least 15% of e-payment operators needs to be locally owned. Nikkei Asia cited local media conglomerate Elang Mahkota Teknologi as a potential candidate for the purchase.
To date, Grab has acquired three companies, including B2B2C wealthtech provider Bento, mobile payments solutions provider iKaaz, and ecommerce solutions company Kudo.
After launching as a ride-hailing company, Grab has expanded to offer a wide variety of products and services (hence its classification as a super app). The Southeast Asia-based company now serves consumers, merchants, and drivers with deliveries, financial services, a hotel-booking tool, payment processing and rewards, business financing, and more.
Photo by Jason Miraples on Unsplash
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Source: https://finovate.com/grab-takes-majority-stake-in-e-payment-service-ovo/
