Goldman Sachs backs Japan’s Go Inc. taxi app valuing it at $1 billion

Goldman Sachs invested in Go Inc., Japan’s greatest ride-hailing app in a funding spherical which values the start-up at $1 billion, the corporate introduced on Wednesday.

The U.S. funding financial institution invested 10 billion Japanese yen ($72.1 million) into Go.

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Goldman’s funding comes as expertise startups nonetheless face a tough surroundings during which to boost funding, as macroeconomic headwinds prevail and the fallout from the collapse of Silicon Valley Financial institution this yr — a key pillar of the trade — continues to ripple internationally.

“We consider this spherical of fundraising is extremely vital, indicating that we’ve gained excessive social credibility,” Hiroshi Nakajima, President of Go Inc., mentioned in a press launch.

The corporate mentioned it plans to make use of the funds to enhance its app and “to develop next-generation companies stemming from the mobility trade for the decision of varied societal points.”

Go Inc. operates an Uber-style of ride-hailing service in Japan, however is making an attempt to focus the corporate on different areas of mobility. For instance, it has a enterprise the place it sells a digicam and software program to watch drivers and guarantee they don’t seem to be driving dangerously.

The corporate mentioned this yr that it’s shutting down its meals supply enterprise, as individuals return to eating places following the pandemic.

Goldman Sachs has constructed up its non-public investments in tech companies. One in every of its most notable investments was is ride-hailing agency Uber, though the financial institution has now dumped its complete stake within the firm.

However Goldman Sachs stays bullish on ride-hailing.

“Mobility is an integral a part of our on a regular basis life, and Go Inc. is well-positioned to steer digitalization and innovation of Japan’s taxi market,” Stephanie Hui, international co-head of progress fairness at Goldman Sachs Asset Administration, mentioned in a press launch.