Sea acquires Indonesian bank to gain foothold in financial tech
[SINGAPORE] Singapore's Sea Ltd, the tech startup that's become South-east Asia's most valuable company, has acquired Indonesia's Bank Kesejahteraan Ekonomi, according to people familiar with the matter.
Sea has gained full control of the Jakarta-based lender, better known as Bank BKE, after buying stakes from existing shareholders Danadipa Artha Indonesia and Koin Investama Nusantara through its subsidiary Turbo Cash Hong Kong, said the people who asked not to be named as the matter is private.
The move accelerates the company's ambition to establish itself as a leader in financial technology and services across its region, much as it has done with mobile gaming and online shopping.
Sea raised almost US$3 billion in a stock offering last month, saying it intends to spend the proceeds on business expansion.
Representatives of Sea and Bank BKE declined to comment. Bank BKE began operations in 1992 with the primary goal of supporting the welfare of civil servants, according to its website.
South-east Asia's biggest internet companies are all vying for a share of a growing digital banking arena. Sea secured a licence to open a digital bank in Singapore in December, joining an increasingly competitive field that also features a joint venture between Grab Holdings and Singapore Telecommunications.
A NEWSLETTER FOR YOU
Garage
The hottest news on all things startup and tech to kickstart your week.
Gojek last month paid roughly US$160 million to increase its stake in Bank Jago to 22.16 per cent, making its biggest investment in financial services to date.
Gojek, which is backed by Facebook and PayPal Holdings, aims to let users open bank accounts with Jago and then manage their finances through its app. Its e-wallet GoPay, which extends digital financial services to merchants and drivers, competes with Sea's e-wallet ShopeePay and Ovo, backed by Grab and Tokopedia.
DealStreetAsia first reported Sea's acquisition of Bank BKE.
BLOOMBERG
READ MORE: Sea can pass on S-E Asian deal frenzy
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Startups
High Court dismisses bid by co-founder and CTO to liquidate Cake Group
Semiconductor unicorn Silicon Box vows to avoid geopolitical mire
A cheat sheet of startup and tech M&As in South-east Asia
Zilingo ex-CEO’s criminal complaint is retaliation against whistleblowers: source
Gojek and ComfortDelGro Taxi to send untaken rides to each other’s platforms
SG fintech firm Bambu shuts down after missing profit targets, says founder