Hiroshi Nakajima, president of Go Inc. The Japanese ride-hailing agency raised cash from Goldman Sachs which values it at $1 billion.
Shoko Takayasu | Bloomberg | Getty Images
Goldman Sachs invested in Go Inc., Japan’s largest 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 know-how startups nonetheless face a tough setting through which to lift funding, as macroeconomic headwinds prevail and the fallout from the collapse of Silicon Valley Bank this 12 months — a key pillar of the trade — continues to ripple the world over.
“We believe this round of fundraising is highly significant, indicating that we have gained high social credibility,” Hiroshi Nakajima, President of Go Inc., mentioned in a press launch.
The firm mentioned it plans to make use of the funds to enhance its app and “to develop next-generation businesses stemming from the mobility industry for the resolution of various societal issues.”
Go Inc. operates an Uber-style of ride-hailing service in Japan, however is attempting 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 aren’t driving dangerously.
The firm mentioned this 12 months that it’s shutting down its meals supply enterprise, as folks return to eating places following the pandemic.
Goldman Sachs has constructed up its personal investments in tech companies. One of its most notable investments was is ride-hailing agency Uber, though the financial institution has now dumped its complete stake within the firm.
But Goldman Sachs stays bullish on ride-hailing.
“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,” Stephanie Hui, world co-head of progress fairness at Goldman Sachs Asset Management, mentioned in a press launch.