Indonesia's Wealth Fund Weighs Role in $7 Billion Grab-GoTo Deal
Indonesia's sovereign wealth fund Danantara is considering a role in Grab Holdings Ltd. 's planned $7 billion acquisition of GoTo Group, potentially allowing the country's government to own a slice of an Asian internet powerhouse.
Danantara has started preliminary discussions with GoTo to acquire a minority stake in a combined entity, according to people familiar with the matter. That could help assuage concerns in the Indonesian government resulting from the sale of a national tech champion to Singapore's Grab, the people said.
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A Look At The Intrinsic Value Of Kim Heng Limited (Catalist:5G2)
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We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (SGD, Millions) S$6.33m S$5.88m S$5.63m S$5.50m S$5.46m S$5.46m S$5.50m S$5.57m S$5.66m S$5.76m Growth Rate Estimate Source Est @ -11.11% Est @ -7.07% Est @ -4.24% Est @ -2.26% Est @ -0.87% Est @ 0.10% Est @ 0.78% Est @ 1.25% Est @ 1.58% Est @ 1.82% Present Value (SGD, Millions) Discounted @ 8.8% S$5.8 S$5.0 S$4.4 S$3.9 S$3.6 S$3.3 S$3.0 S$2.8 S$2.6 S$2.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = S$37m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. 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For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Kim Heng, we've compiled three important aspects you should assess: Risks: Every company has them, and we've spotted 5 warning signs for Kim Heng (of which 1 can't be ignored!) you should know about. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of! PS. Simply Wall St updates its DCF calculation for every Singaporean stock every day, so if you want to find the intrinsic value of any other stock just search here. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Financial services are pushing up the revenues of the Southeast Asia 500's most prominent tech startups
Tech has a tiny presence on the Southeast Asia 500, generating just under 3% of the list's total revenue. Just one internet company, Sea, sits in the top 20, whereas four such companies sit in the Fortune 500's top 20. Yet the region's most prominent internet platforms all climbed up this year's rankings. Sea, No. 15, rose five places on this year's Southeast Asia 500 after growing its revenue by almost 30% year-on-year to reach $16.8 billion. Singapore's Grab also rose 24 places, reaching No. 128 on this year's list, with revenue of $2.8 billion. And fellow ride-hailing platform GoTo, based in Indonesia, jumped 13 spots with sales of $1 billion. All three platforms can cite one particular business for helping drive recent success: financial services. None of these companies started off as truly fintech companies. Sea focuses on gaming and e-commerce, while Grab and GoTo started off with ride-hailing and delivery. But financial services is proving to be a straightforward–and potentially lucrative–path for the region's tech companies. Financial services is a small, but quickly growing, part of Sea's business. Sea's digital financial services arm, recently rebranded to Monee, grew by almost 35% last year, reaching $2.4 billion. Sea's carried that momentum into 2025. Monee's revenue posted year-on-year growth of 57.6% in the first quarter, reaching $787.1 million. As of March 31, 2025, consumer and loans principal outstanding stood at $5.8 billion, up 76.5% from the same period a year ago. Monee launched an e-wallet in 2014, and since then has expanded to services like credit, banking, and insurtech. Most of Sea's digital financial revenue and operating income is driven by its consumer and small and medium enterprise credit business. Sea also owns two digital banks: Maribank, which operates in Singapore, and Seabank which operates in Indonesia and the Philippines. Grab's financial services was also the ride-hailing platform's fastest growing business last year, with revenue rising by 44% to reach $253 million. Again, that momentum carried into 2025, with financial services revenue growing by 36% year-on-year in the first quarter. Like Sea, Grab first started its financial services business with an e-wallet. The company now offers loans to its drivers and merchants partners, and has also expanded into the digital banking space through GXS Bank and GX Bank in Singapore and Malaysia respectively. Grab's total loans disbursed as of March 31, 2025 reached $566 million, a 56% increase from the same period the year before. GoTo has also set up its own financial services app, separate from its flagship ride-hailing service Gojek. GoPay, launched in 2023, uses less mobile data than having to use GoPay through the Gojek app, making it easier to access for those with less powerful phones. GoTo also holds a 22% stake in Bank Jago, an Indonesian digital bank. Revenue for Goto's financial services unit almost doubled last year, reaching 3.7 trillion Indonesian rupiah ($230 million). Financial services is still a smaller business for Sea, Grab and GoTo when compared to their main services, but it's a natural progression for these tech companies as they try to serve a population that's still largely underbanked. Gross margins for financial services are also often higher compared to their main services offered like e-commerce or ride-hailing. These customers normally present greater risks for traditional financial institutions. But tech platforms argue their data on users, gleaned from their e-commerce or on-demand services, can help build a risk profile that can be used to judge creditworthiness, thereby allowing them to disburse loans to a segment of population that traditional banks may not want to work with. Digital banks offer another way to acquire more customers. Grab, Sea or GoTo can encourage users of their e-wallet services to open a new account with a digital bank. That, in turn, will give these companies more data, and eventually start offering other services like investment and insurance products. This story was originally featured on 登入存取你的投資組合
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an hour ago
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Financial services are pushing up the revenues of the Southeast Asia 500's most prominent tech startups
Tech has a tiny presence on the Southeast Asia 500, generating just under 3% of the list's total revenue. Just one internet company, Sea, sits in the top 20, whereas four such companies sit in the Fortune 500's top 20. Yet the region's most prominent internet platforms all climbed up this year's rankings. Sea, No. 15, rose five places on this year's Southeast Asia 500 after growing its revenue by almost 30% year-on-year to reach $16.8 billion. Singapore's Grab also rose 24 places, reaching No. 128 on this year's list, with revenue of $2.8 billion. And fellow ride-hailing platform GoTo, based in Indonesia, jumped 13 spots with sales of $1 billion. All three platforms can cite one particular business for helping drive recent success: financial services. None of these companies started off as truly fintech companies. Sea focuses on gaming and e-commerce, while Grab and GoTo started off with ride-hailing and delivery. But financial services is proving to be a straightforward–and potentially lucrative–path for the region's tech companies. Financial services is a small, but quickly growing, part of Sea's business. Sea's digital financial services arm, recently rebranded to Monee, grew by almost 35% last year, reaching $2.4 billion. Sea's carried that momentum into 2025. Monee's revenue posted year-on-year growth of 57.6% in the first quarter, reaching $787.1 million. As of March 31, 2025, consumer and loans principal outstanding stood at $5.8 billion, up 76.5% from the same period a year ago. Monee launched an e-wallet in 2014, and since then has expanded to services like credit, banking, and insurtech. Most of Sea's digital financial revenue and operating income is driven by its consumer and small and medium enterprise credit business. Sea also owns two digital banks: Maribank, which operates in Singapore, and Seabank which operates in Indonesia and the Philippines. Grab's financial services was also the ride-hailing platform's fastest growing business last year, with revenue rising by 44% to reach $253 million. Again, that momentum carried into 2025, with financial services revenue growing by 36% year-on-year in the first quarter. Like Sea, Grab first started its financial services business with an e-wallet. The company now offers loans to its drivers and merchants partners, and has also expanded into the digital banking space through GXS Bank and GX Bank in Singapore and Malaysia respectively. Grab's total loans disbursed as of March 31, 2025 reached $566 million, a 56% increase from the same period the year before. GoTo has also set up its own financial services app, separate from its flagship ride-hailing service Gojek. GoPay, launched in 2023, uses less mobile data than having to use GoPay through the Gojek app, making it easier to access for those with less powerful phones. GoTo also holds a 22% stake in Bank Jago, an Indonesian digital bank. Revenue for Goto's financial services unit almost doubled last year, reaching 3.7 trillion Indonesian rupiah ($230 million). Financial services is still a smaller business for Sea, Grab and GoTo when compared to their main services, but it's a natural progression for these tech companies as they try to serve a population that's still largely underbanked. Gross margins for financial services are also often higher compared to their main services offered like e-commerce or ride-hailing. These customers normally present greater risks for traditional financial institutions. But tech platforms argue their data on users, gleaned from their e-commerce or on-demand services, can help build a risk profile that can be used to judge creditworthiness, thereby allowing them to disburse loans to a segment of population that traditional banks may not want to work with. Digital banks offer another way to acquire more customers. Grab, Sea or GoTo can encourage users of their e-wallet services to open a new account with a digital bank. That, in turn, will give these companies more data, and eventually start offering other services like investment and insurance products. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
