Gojek writes off Pathao investment
Gojek Singapore, the main investor of Pathao, had a good tenfold upsurge in year-on-year loss found in 2019, largely stemming from its investment found in Bangladesh's ride-hailing service since it moved to completely clean up its balance sheet.
Tech in Asia, a startup and tech news media, reported recently that Gojek's losses before income taxes were around $28.6 million, which Pathao contributed $17 million.
In the financial statement, these "convertible notes" to Pathao were written off as "impairment loss".
In accounting, impairment describes a permanent reduction in the worthiness of a company's asset, typically a fixed asset or an intangible asset.
When contacted, Pathao, the greatest ride-sharing, e-commerce delivery, and meals delivery program in Bangladesh, said: "This article identifies an accounting treatment created by Gojek over this past year in May 2019, related to its investment in Pathao, as reported in Gojek's financial statements for 2019."
"Gojek continues to be one of Pathao's key shareholders," it said found in a news release yesterday.
Founded in 2015, Pathao is among the fastest-growing tech startups in Asia.
In 2018, Gojek Singapore, which holds an 18.67 per cent stake in Pathao through subsidiary Ojek Motor Bangladesh, provided $13 million in loans to Pathao. That was topped up in 2019, according to Tech in Asia.
The news headlines came as two of Indonesia's major tech companies, Gojek and Tokopedia, are in discussions over a merger, with a view to create a short public offering, because they gear up to confront the region's biggest tech company, Singapore's Sea, reported Nikkei Asia.
Industry analysts recommend the move was created by Gojek to create its books more desirable for the impending merger or perhaps public listing.
Kevin Aluwi, co-CEO and co-founder of Gojek, didn't respond to a request for comment by the time this article was filed.
