OVO (payment service)

OVO, officially a product of PT Visionet Internasional, is a digital payment service based in Jakarta, Indonesia. It was established in 2017 with an e-money license from Bank Indonesia,[1] and in 2019 was Indonesia's top digital payment service.[2] Owned by Grab and local investors,[3] in 2019, OVO became Indonesia's first finance-tech business unicorn.[1]

PT Visionet Internasional
OVO
Industry
Founded25 September 2017
FoundersLippo Group
Headquarters
Jakarta, Indonesia
Number of locations
Indonesia
Key people
Jaygan Fu Ponnudurai, Karaniya Dharmasaputra
OwnerGrab (90%), remainder local investors
Websitewww.ovo.id

History

OVO was founded by Lippo Group and received permission to operate as a fintech company throughout Indonesia on 25 September 2017 with an e-money license for Bank Indonesia.[4] OVO is a product of PT Visionet International, which is the digital financial services subsidiary of the Lippo Group.[5] OVO debuted a digital wallet in September of 2017.[6] In December 2017, it was announced that Tokyo Century Corporation had invested US$116 million for a 20% stake in the startup.[7] OVO added new financial services in 2018[6] and Grab invested in the company.[8]

In March 2019, Indonesian e-commerce company Tokopedia invested in OVO.[9] That month, OVO's value was estimated at US$2.9 billion by CB Insights.[5] In October 2019, the Minister of Communications and Information Rudiantara announced that OVO had become the fifth official Indonesian unicorn[5] after Gojek, Traveloka, Bukalapak and Tokopedia.[3] OVO was also recognized as Indonesia's first finance-tech business unicorn.[1] PT Visionet International shareholders appointed Karaniya Dharmasaputra as president director of the company in 2019, replacing Andrian Suherman, who had led OVO for three years.[6] In 2021, Grab increased its stake in OVO to 79.5%, acquiring Tokopedia and Lippo Group's shares together with a number of local investors.

In October of 2021, Grab bought out Tokopedia and raised its stake in OVO to 90% in the process, also buying stakes from Lippo Group.[10] Dyak NK Makhijani became President Commissioner at PT Visionet Internasional in August of 2022, after Mirza Adityaswara left the OVO board of commissioners. At that time, 90% of OVO was owned by Grab.[11]

Products and services

OVO's core business is digital payment based on its e-money license. According to a 2021 report by research company Kadence International, at the time OVO was the leading e-money / digital wallet in Indonesia[12][13][14] for both online and offline transactions.

Also involved in financial services, OVO offers lending services through Taralite (PT Indonusa Nusa Sejahtera), a P2P lending company that it acquired in 2019,[15] as well as investment products under OVO | Invest and insurance products under OVO | Proteksi in collaboration with partners.[16]

OVO | Invest reported 450,000 registered users in its first 3 months, with the first product launched under OVO | Invest the first money market fund in Indonesia to offer instant redemption.[17]

OVO works with companies for these financial services products such as Adira Finance (a member of MUFJ Group),[18] Bank BRI,[19] Manulife Aset Manajemen Indonesia,[20] and Prudential Indonesia.[21]

See also

References
  1. Media, Liputan (4 October 2019). "Ovo Jadi Unicorn Kelima, Rudiantara Sebut Sesuai Target 2019". Ditjen Aptika (in Indonesian). Jakarta: CNN Indonesia. Retrieved 12 November 2021.
  2. "Ovo confirms unicorn status". Tech in Asia. Retrieved 14 November 2019.
  3. Potkin, Fanny. "Grab to Take Majority Stake in Indonesia's OVO". NASDAQ. Singapore: Reuters. Retrieved 12 November 2021.
  4. Ping, Foo Boon (15 August 2019). "OVO's Thompson: "We're moving forward from payments into financial services"". The Asian Banker. Retrieved 14 November 2019.
  5. "Digital payment service firm OVO is Indonesia's fifth unicorn, minister says". the Straits Times. 9 October 2019.
  6. "E-Wallet OVO Punya Bos Baru, Siapa Itu?". CNBC Indonesia. 19 September 2019.
  7. "The 2020 Indonesian E-wallet Race". M2 Insights. Retrieved 25 April 2020.
  8. Reyes, Jean (14 November 2018). "Report: Grab invests in Indonesian payment platform to take on Go-Jek". www.spglobal.com. Retrieved 12 November 2021.
  9. Maulani, Anisa (15 March 2019). "Tokopedia reportedly invests in e-wallet platform OVO". E27.
  10. Lee, Yoolim; Ho, Yudith; Baigorri, Manuel (4 October 2021). "Grab Raises Stake in E-Wallet Ovo to 90%, Buys Out Tokopedia". Bloomberg.com.
  11. Gosta, Demis Rizky (6 August 2022). "Eks Petinggi Bank Indonesia Jadi Presiden Komisaris OVO". CNBC Indonesia.
  12. "The 2021 Mobile Wallets Report from Boku". boku.mobilewallet.report. Retrieved 12 November 2021.
  13. Sari, Ferrika (24 February 2021). Laoli, Noverius (ed.). "Riset UBS Global ungkap OVO kuasai 30% transaksi pembayaran digital di Indonesia". kontan.co.id (in Indonesian). Jakarta: Grahanusa Mediatama. Retrieved 12 November 2021.
  14. "Tech in Asia - Connecting Asia's startup ecosystem". www.techinasia.com. Retrieved 12 November 2021.
  15. Singh, Pooja (28 March 2019). "How Ovo Has Grown to be Indonesia's Largest Digital Payments Platform". Entrepreneur.
  16. "Prudential and OVO forge strategic partnership in Indonesia". www.prudentialplc.com. Retrieved 19 June 2023.
  17. "Indonesian E-Wallet OVO Rolls Out in-App Investment Product". Fintech Singapore. 3 February 2021. Retrieved 12 November 2021.
  18. Rahardyan, Aziz (17 June 2021). "Adira Finance Gandeng OVO, Bisa Beli Motor Cicilan Ringan Langsung dari Aplikasi | Finansial". Bisnis.com (in Indonesian). Retrieved 12 November 2021.
  19. Safuroh, Faidah Umu. "BRI dan OVO Hadirkan Aplikasi Pinjaman Modal Digital bagi UMKM". detikfinance (in Indonesian). Jakarta: detikcom. Retrieved 12 November 2021.
  20. "Tech in Asia Indonesia - Komunitas Online Startup di Asia". id.techinasia.com. Retrieved 12 November 2021.
  21. "Prudential Corporation Asia website". www.prudentialcorporation-asia.com. Retrieved 12 November 2021.
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