Goldman Sachs invested $72.1 million in Go Inc., Japan's leading ride-hailing app, valuing the company at $1 billion. This investment is noteworthy given the difficult funding environment for tech startups, as macroeconomic challenges and the aftermath of Silicon Valley Bank's collapse continue to impact the startup ecosystem.
Go Inc. plans to use the funds to improve its app and develop new businesses in the mobility industry. The company, which operates a ride-hailing service in Japan, aims to shift its focus to other mobility-related areas. It sells driver monitoring camera systems to ensure safe driving but has decided to close its food delivery business due to the post-pandemic return of customers to restaurants.
Why it matters
Goldman Sachs has increased its holdings in technology companies through private investments. One of its noteworthy investments was in the ride-hailing company Uber, but the bank has since divested its entire stake in the company. However, Goldman Sachs maintains a positive outlook on the ride-hailing industry.