Chapter 177 The dispute over the proportion of shares
Traffic in Indonesia was very congested, and it was already three hours later when the convoy arrived at the Sudirman Central Business District in the south of the capital, Jakarta.
Zhang Yida looked at the skyscrapers standing on both sides of the road and nodded secretly. When he arrived here, he finally felt like the capital of a country, comparable to some of the leading second-tier cities in the country.
The vehicle stopped in front of a brand-new office building. The group got out of the vehicle, went upstairs and entered Gojek's headquarters.
Gojek's headquarters is located on the 26th floor of the building. It rents an entire floor and is beautifully decorated and decorated. It is more luxurious than the offices of many domestic Internet peers.
Zhang Yida asked Aluvi how much the rent was, and Aluvi told him that it was 560,000 rupees per square meter per month, which is about 250 yuan per square meter per month when converted into RMB.
The rent is not much cheaper than that of Grade A office buildings in Beijing. Gojek spends millions of RMB on rent every year.
After Zhang Yida and his team entered Gojek, hundreds of programmers were still typing code in the open workstations.
Zhang Yida took a few glances and found that most of the people were dark-skinned, probably aboriginals. There were not many Chinese with fairer skin, and he only saw a few people.
Entering a luxurious conference room, Zhang Yida met Fili Unadi, the founder and CEO of Traveloka, the Indonesian version of "Ctrip".
and William Tanuwiaya, founder and CEO of Tokopedia, the Indonesian version of “Taobao.”
It can also be seen from the appearance of these two people that their skin color is fair and they have a Chinese appearance, so they should be of Chinese descent.
From the Ming and Qing dynasties to the Republic of China, many Chinese people from Fujian, Guangdong and other places chose to go to Nanyang to seek life, which led to the famous population migration in modern Chinese history - going to Nanyang.
These ancestors who went to Southeast Asia and their descendants, while working hard, also seized the opportunities of the times, and finally accumulated a large amount of wealth.
Many Chinese have had a huge impact on the economy of Southeast Asia, changing the backwardness of their host countries, and completely changing the fate of themselves and their families.
Zhang Yida knows that in traditional industries, Southeast Asian Chinese chaebols play an important role.
Unexpectedly, the Internet industry will soon be monopolized by Chinese Americans.
The three largest unicorns in Indonesia in the future are either CEOs or co-founders of Chinese descent.
Feili and William met Lei Dongming last time, and Lei Dongming negotiated the investment with them.
So Lei Dongming came forward to introduce both parties, and Feili and William greeted Zhang Yida warmly.
In their view, Zhang Yida is a local tycoon from China and the main financier behind the scenes. The company needs a lot of help from him for future financing.
Not only did he talk in Chinese, he also said that he would take Zhang Yida to feel the enthusiasm of the Indonesian people.
After chatting for a while, Quartet began to return to the topic.
“This time I came to Indonesia mainly for the establishment of an e-wallet joint venture between our four parties.
On the way from the airport, I also chatted with Gojek’s Aruvi and got a general understanding of the current situation of mobile payment in Indonesia.
To be honest, I think Indonesia’s mobile payment infrastructure is still very poor and not very popular.
Improving this backward status will also be conducive to the promotion and improvement of the business of Gojek, Tokopedia and Traveloka in the local market in Southeast Asia.
In China, taxi-hailing software, online travel software, and e-commerce software all use the latest mobile payment technology.
Basically, Internet users in China have one or more e-wallet accounts.
To set up an e-wallet company, in addition to technology, we also need usage scenarios.
Our Ruixiang Group can provide technical support. The three companies belong to taxi-hailing, e-commerce, tourism and other fields, and can provide users with rich usage scenarios.
But three scenarios are not enough. In the future, e-wallets can also be expanded to offline merchants, restaurants, hospitals, public transportation systems, shopping malls, etc.
In China, Ruixiang Group's Mobao Pay has more than 100 million active C-side users, and it cooperates with more than 10 million small and micro enterprises and merchants on the B-side to provide usage scenarios.
E-wallet is destined to be a big trend, and the market potential is huge enough.
We, the four parties, will join hands to be number one in Indonesia first, and in the future we can expand to the entire Southeast Asian market.
You three, please share your thoughts!"
After listening to Zhang Yida's words, various parties had mixed reactions.
Gojek CEO Makarim frowned. E-wallets are indeed a hot topic, but in a four-party joint venture, each company can’t get much of its shares?
Moreover, among the four companies, Gojek is the smallest, with a valuation of less than US$100 million.
If it's a joint venture, you won't get much say.
Traveloka CEO Feili nodded in recognition of Zhang Yida's words, saying that many of Traveloka's businesses are limited by mobile payment technology and cannot be fully developed.
He has heard about China's mobile payment technology for a long time, and it is definitely among the best in the world.
If Ruixiang is willing to provide mobile payment technology, he will support the joint venture.
William, CEO of Tokopedia, asked with a smile on his face:
"Mr. Zhang, I am in favor of this joint venture. How will the equity be distributed?
I suggest ranking shareholders based on each company’s valuation!”
William's idea is very good. Among the four companies here, except Ruixiang, Tokopedia has the highest valuation, which has reached 800 million US dollars.
Zhang Yida didn't answer. He also saw that Tokopedia wanted to become the second shareholder of this joint venture.
He didn't have much opinion on this, but turned his attention to Makarim and Feili to see how they would reply.
“Ruixiang Group’s valuation is as high as tens of billions of dollars, and it is also the technology provider of the joint venture. I have no objection to it becoming the majority shareholder of the joint venture.
But if we have three companies, I recommend that the equity be equally distributed."
Makarim said, Ruixiang is more than a hundred times larger than Gojek, and is an important shareholder of Gojek. He supports Ruixiang becoming a major shareholder.
Because it not only brings advanced technology, but also a steady stream of money...
Although Tokopedia’s valuation is claimed to be US$800 million and its size is several times larger than Gojek’s, how can it do that?
Makarim believes that Gojek is no worse than any other company, and its backwardness is only temporary. It will take minutes to surpass Tokopedia and Traveloka in the future.
If you are willing to share equity equally with these two companies, you are looking up to them.
"It doesn't matter to me. I can divide the equity equally or be the third largest shareholder."
Feili stated that Traveloka’s valuation has reached US$450 million after Ruixiang’s investment.
For Traveloka, there is not much difference whether it is sorted by valuation or whether the three companies share equity equally.
“An e-wallet company needs subsidies after its establishment. Let’s raise US$50 million from all parties first!
If Gojek invests US$10 million in shares, I will agree to share the equity equally among the three parties.
Makarim, what do you think?"
William had a smile on his face. He knew the situation of Gojek very well. Since its establishment, it has only completed two rounds of US$15 million in financing.
Let alone asking them to pay 10 million U.S. dollars, it would be difficult to ask them to pay 5 million U.S. dollars.
William's trick of using money to pressure people was really cruel. Makarim's face turned livid with anger and he said:
“Does it cost $50 million to set up a startup?
I would like to ask Mr. Tanuviya, how much money did you invest when you founded Tokopedia?
As far as I know, when Tokopedia was founded, it was just you and your friend.
Do you have a starting capital of US$100,000?”
William shook his head and said: "Yes, it was indeed very difficult when I founded Tokopedia, and there was not much entrepreneurial capital.
But times have changed. Electronic wallets are a money-burning business. If you don’t have enough capital, you are not qualified to participate in this game.
Ask Mr. Zhang from China, how much did Ruixiang Group subsidize its mobile payment business last year?"
Makarim turned his attention to Zhang Yida, who was speechless. Why did the war burn my side?
Zhang Yida thought for a while and said: "Mobao Pay lost more than 2 billion yuan last year.
But Indonesia’s population is several times smaller than China’s, so it cannot suffer such a huge loss.
And without a decent payment company as a rival, you can avoid a lot of losses."
Makarim and William each held their own opinions and continued to argue, all for taking more shares in the joint electronic wallet company.
What is the potential of e-wallets in the future?
Just look at Ruixiang Group and Leech Financial Services Group.
Electronic payment is a big gold mine, and everyone wants to get more.
Under this situation, Zhang Yida was also in a difficult position. He couldn't stand it because it would offend others.
Gojek is valued at US$55 million, and Ruixiang Group invested US$5 million, occupying 9.1% of the shares.
Tokopedia is valued at US$800 million, and Ruixiang also invested a full US$80 million, accounting for 10% of the shares.
As for Traveloka, its valuation is US$450 million. Ruixiang invested US$50 million, holding 11.1% of the shares.
These three companies hold shares in the joint venture, which means Ruixiang Group also indirectly holds a certain proportion of the shares in the joint venture.
If he were simply pursuing shareholding, Zhang Yida would simply support Traveloka to acquire more shares, while Ruixiang would indirectly hold even more shares.
But that’s not how it works out. In terms of development potential, Gojek>Tokopedia>Traveloka.
Gojek's development is about to accelerate. In less than two years, its valuation and number of users will surpass Tokopedia.
If Zhang Yida supports Tokopedia, Gojek may be offended.
In its previous life, Gojek launched a separate e-wallet company, GoPay, and it became the e-wallet with the most active users in Indonesia.
So Zhang Yida has a headache. With his shareholding reduced, it is very likely that Gojek will start a new business in the future.
If the joint venture company does not have Gojek, Indonesia's largest unicorn in the future, it will be difficult for its business to be the first in the country.
At the same time, he also has to consider the ideas of Tokopedia and Traveloka.
Gojek's current valuation and user volume are not as good as the latter two. Putting the three in the same position is likely to offend the latter two.
Makarim and William continued to argue, and Zhang Yida interrupted them:
"Gentlemen, please pause for a moment. Let me tell you what I think!"
Makarim and William were trying to save Zhang Yida's face, so they paused their quarrel and turned their attention to Zhang Yida to see what he wanted to say.
“Currently the largest electronic payment company in Indonesia is Tcash, which is a subsidiary of a telecommunications operator.
I think you all know the strength of a country's telecom operators.
In addition, it is difficult to protect state-owned enterprises in the future, and whether foreign giants will enter this field.
If everyone works independently, their respective e-wallet companies may be second- or third-rate.
We cannot be blinded by the short-term interests in front of us.
We need to take a longer-term view. Think about it, if we join forces, we can build an e-wallet company with hundreds of millions of users.
Your taxi-hailing business, travel business, and e-commerce business will all benefit.
With the e-wallet, I think it will be more convenient for many people to use your platform's services.
People who are not users of your platform may be attracted to your platform because of convenience.
Therefore, I suggest that everyone take a step back. Shares will not never change.
If whose platform develops better and brings greater development to the e-wallet company, he will be eligible to increase his shares in subsequent capital increases and share expansions.
Including Ruixiang Group, it may not be the majority shareholder in the future, and one of your three companies will be the majority shareholder.
But there is a premise that the company he belongs to can bring greater and more promising development to electronic wallets.
So, it makes no sense for us to argue about this little stake right now.
Let’s arrange it this way!
The initial funding raised by the electronic payment company is set at US$5 million, Ruixiang will contribute US$2.45 million, and the three of you will each contribute US$850,000.
After developing product research and development and the first phase of promotion, we will continue to negotiate the share ratio based on our respective contributions and the development of our respective companies.
What do you think? Anyway, I think this is fair and reasonable."