AAA Grab pays up to $100m for Kudo

Grab pays up to $100m for Kudo

On-demand ride platform Grab closed the acquisition of Indonesia-based mobile payment platform Kudo on Monday, allowing media businesses Emtek and Singapore Press Holdings, and digital media company Gree to exit.

Grab paid between $80m and $100m in cash and stock for the company, a source with knowledge of the deal told TechCrunch.

Kudo operates an online-to-offline (O2O) payment platform through which users can buy goods from a network of about 400,000 agents across 50 Indonesian towns or cities without needing access to a bank account.

Gree led a seven-figure round for Kudo in 2015 through its Gree Ventures subsidiary, participating alongside 500 Startups, IMJ Investment Partners and existing backer East Ventures.

Emtek subsequently led an eight-figure sized round in September 2016 that included Singapore Press Holdings, East Ventures, 500 Startups, IMJ Investment Partners and Skystar Capital.

Kudo will be absorbed by Grab’s own mobile payments platform, GrabPay, post-acquisition, and Grab intends to introduce new products such as insurance and consumer loans to the platform.

The acquisition was made as part of Grab 4 Indonesia, an initiative that will involve Singapore-based Grab investing $700m in Indonesia, its largest market, by 2020.

Grab president Ming Maa said: “Combining Kudo’s innovative O2O e-commerce solution and extensive agent network with GrabPay and Grab’s massive and active customer base will advance our mission of providing millions of people across Indonesia with increased access to convenient cashless payments and new income opportunities, while also unlocking compelling new ways to boost online spending.”

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