Go Inc., Japan’s biggest ride-hailing app, has announced that it has secured a $72.1 million investment from Goldman Sachs. This funding round values the start-up at $1 billion and will allow the company to improve its app and develop next-generation businesses stemming from the mobility industry. According to Hiroshi Nakajima, President of Go Inc., “We believe this round of fundraising is highly significant, indicating that we have gained high social credibility.”
Go Inc. Focuses on Other Areas of Mobility
Go Inc. operates an Uber-style ride-hailing service in Japan, but the company is making efforts to shift its focus to other areas of mobility. For instance, it has a business where it sells a camera and software to monitor drivers and ensure they are driving safely. The company has also shut down its food delivery business as people begin to return to restaurants following the pandemic.
Goldman Sachs’ Investments in Tech Firms
Goldman Sachs has been building up its private investments in tech firms. One of its most notable investments has been in ride-hailing firm Uber. However, the bank has now dumped its entire stake in the company. Despite this, Goldman Sachs remains bullish on ride-hailing. According to Stephanie Hui, global co-head of growth equity at Goldman Sachs Asset Management, “Mobility is an integral part of our everyday life, and Go Inc. is well-positioned to lead digitalization and innovation of Japan’s taxi market.”
Difficult Environment for Technology Startups to Raise Funding
The investment from Goldman Sachs comes at a time when technology startups still face a challenging environment in which to raise funding. Macro-economic headwinds prevail, and the fallout from the collapse of Silicon Valley Bank this year, a key pillar of the industry, continues to ripple across the world. Despite this, Goldman Sachs’ investment in Go Inc. highlights the start-up’s high social credibility and potential for innovation in Japan’s taxi market.
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