SINGAPORE (Reuters) – Southeast Asian ride-hailing firm Grab on Monday said it has agreed to buy Indonesian online payment startup Kudo, marking the first investment under a recently announced plan to commit $700 million to its largest market.
Grab did not disclose the deal value. Reuters in February reported Grab’s plan to buy Kudo for over $100 million, citing a person close to the matter.
Grab, the main Southeast Asian rival of Uber Technologies Inc, said the deal would come under the $700 million it has committed to invest in Indonesia over the next four years.
Founded in 2014, Kudo helps consumers with no bank accounts and based in small towns and cities make online payments through its agents. Kudo in the statement said the acquisition created immediate synergies with its existing business.
The two firms also plan to explore opportunities to increase the types of financial services that Kudo could offer, including insurance and consumer loans, said Grab.
Upon closing the deal, the Kudo team and platform will be integrated with Grab’s online payment service GrabPay.
In a separate statement, Grab said it has hired Jason Thompson, previously of U.S. electronic payments company Euronet Worldwide Inc, as head of GrabPay to be based in Singapore.
(Reporting by Aradhana Aravindan; Editing by Christopher Cushing)
Republished with permission from Reuters