Grab, GoTo IPO May Spawn More Southeast Asian Unicorns: 500 Startups

Singapore — A public list of two tech giants in Southeast Asia is likely to pave the way for higher-growth businesses to emerge from the region, said venture capital firm 500 Startups.

Contrary to that concern Local big names may “swallow” “We couldn’t get far from the truth,” Vishal Harnal told CNBC about the innovations of small start-ups and Stimmy. Rather, the initial public offering of Grab and GoTo could strengthen the ecosystem and create more $ 1 billion start-ups, he said.

Singapore-based ride hailing company Grab announced in April It will be announced through a $ 39.6 billion merger of special-purpose acquisition companies, the largest blank-check transaction in history. on the other hand, Newly integrated Indonesian on-demand platform GoToGroup I’ve confirmed with CNBC that it will be released this year.

“There are (mergers and acquisitions), but these companies buy small start-ups, but they invest in far more companies than they buy, leading to even more $ 1 billion companies. Let’s unicorn — the result, ”Harnal said. “Street Signs Asia” Monday.

They will invest in far more companies than they will buy, which will lead to far more $ 1 billion companies.

Vishal Harnal

Managing Partner, 500 Startups

This is because the founders of successful companies have new liquidity to invest in the ecosystem, either aggressively or as angel investors investing in early-stage businesses. On the other hand, staff who have seen employers grow from seed funding to IPOs may be more likely to set up their own company.

Harnal likened this process to the process that took place in China among the well-known tech stocks collectively known as BAT. Baidu, Alibaba And Tencent..

Passengers taking a Gojek motorcycle taxi in Jakarta on May 24, 2018.

Bay Ismoyo | AFP | Getty Images

According to a 500 Startups survey, 40% of the approximately 150 active former unicorns created in China were invested by BAT companies. Since its listing, BAT companies have invested in a total of 915 technology companies.

In contrast, the number of M & As was less than half that, with only 14 occurring in companies worth more than $ 1 billion.

“This happened in China at BAT – Baidu, Alibaba and Tencent. Now there are equivalent GSG – Grab, Sea and GoTo in Southeast Asia,” Harshal said of Singapore-based internet giant. .. Sea group..

“The more companies like GSG spend on educating ecosystems, securing technology adoption, and investing in expanding the Internet economy,” he said. “The more new startups set up companies and the more intrusions they make to take advantage of existing companies.”

Grab, GoTo IPO May Spawn More Southeast Asian Unicorns: 500 Startups

Source link Grab, GoTo IPO May Spawn More Southeast Asian Unicorns: 500 Startups

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