Corporates make their moves

Today, we’ve got the deets on:

• Grab and Tokopedia updates
• Influx of Japanese money

Dear Garage reader, 

It’s earnings season for the likes of Grab and GoTo, during which they will prep to report their financial results for 2023. While it is usually a quiet period in the lead-up to the results, things seem to be the opposite for them this week.

GoTo announced the completion of its TikTok deal, selling a 75.01 per cent stake in Tokopedia to the Bytedance-owned social media platform. The Indonesian tech conglomerate also added that its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) were positive for the fourth quarter of 2023.

Whether that is a bellwether for GoTo in 2024 remains to be seen, as macroeconomic headwinds continue to batter the region just as Indonesia heads to the polls. 

Over at Grab, Singapore’s competition watchdog is further scrutinising its takeover of taxi operator Trans-cab. The last brush Grab had with the Competition and Consumer Commission of Singapore (CCCS) was over the acquisition of Uber’s South-east Asia business. At the time, the commission accepted Grab’s measures to limit its potential monopoly, which included maintaining its pricing algorithm prior to the acquisition. 

This time, CCCS has rejected Grab’s proposed commitments to address concerns over the potential monopolistic powers the ride-hailing platform has on Trans-cab drivers. The major difference between the two incidents is that, in the most recent case, the CCCS has deemed that Grab’s commitments do not sufficiently address concerns arising from a “permanent change in market structure”.

Meanwhile, Grab acknowledges that there have been issues with driver supply in Singapore, something the Trans-cab acquisition was supposed to solve.

Elsewhere, foodpanda’s parent, Delivery Hero, has debunked rumours that its ongoing talks with Grab have collapsed. Grab is reportedly looking to acquire foodpanda’s South-east Asia business following media reports of a potential sale and Chinese food delivery giant Meituan saying it was not interested.

With a potential merger in the works between the top two food delivery players in the region, competition regulators would be keenly eyeing this deal.

Throughout the funding chill startups that have experienced, there has been a steady stream of money from an unlikely source: Japanese corporates. The biggest move by a Japanese company so far has been Sumitomo Life’s acquisition of Singapore insurer Singlife, with a deal that values the company at US$4.6 billion. 

Market watchers have noted that Japanese corporates have been present in the region all along, with proximity and familiarity aiding in their keenness to invest in South-east Asia.

Do note that our newsletter will be taking a break next week for the Lunar New Year holiday. Check below for more stories. Have a good week!

5 things to know

• Buy low, sell high SINGAPORE state investor Temasek has sold a 5.4 per cent direct stake in India-listed PB Fintech, which, sources said, locks in an internal rate of return of 40 per cent. Read more
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• Leg up for AI Startups GOOGLE and Enterprise Singapore are joining forces to help 100 Singapore-based generative artificial intelligence startups develop and commercialise their products over the next three years. Read more
• Fight for your right NEGOTIATIONS between e-commerce platform Lazada and the Food, Drinks and Allied Workers Union (FDAWU) have resulted in an enhanced support package and a training fund. These talks were facilitated by the Ministry of Manpower (MOM). Read more