Indonesian digital payments group Gojek has invested in Indonesia-listed technology-based lender Bank Jago to accelerate financial inclusion in the country.
Under the deal terms, Gojek, through its payments and financial services arm, purchased 1.96 billion shares of Bank Jago at a per-share price of IDR1150 ($0.08).
Gojek spent IDR2.25trn ($158.3m) to acquire an 18.02% stake in the lender, thereby increasing its stake to 22.16% from the previous 4.14%.
Metamorfosis Ekosistem Indonesia and Wealth Track Technology will continue to remain the majority shareholders in Bank Jago with a combined ownership of 51% stake.
Bank Jago will provide millions of Gojek users with access to digital banking services.
Using the Gojek app, users will be able to instantly open a Jago bank account and manage their finances.
Additionally, Gojek will team up with other banks to reach more customers.
Gojek co-CEO Andre Soelistyo said: “Jago’s tech-based banking solutions will supercharge Gojek’s ecosystem offerings and facilitate access to banking services for the mass market, thereby supporting our common vision to accelerate financial inclusion in Indonesia.
“This is the start of a new way of offering financial services to Gojek users as the collaboration will enable us to develop a process through which we can work with other banks.”
Founded in 1992, Jago offers digital banking services to small and medium enterprises (SMEs), consumers and mass-market segments in the country.
Bank Jago president director Kharim Siregar said: “We believe that this strategic collaboration – between a tech-based bank like Bank Jago and a Super App like Gojek – is the first of its kind in Indonesia and Southeast Asia and represents a new way to spur growth in digital economies.
“As a bank designed with an open API, we will go on to work with multiple digital ecosystems to reach a wider audience and drive our aspiration to enhance the finances of millions of people through digital financial solutions.”