On Monday, Grab, the leading
on-demand Southeast Asian ride-hailing service and mobile payments platform,
announced that it expects to raise $2.5 billion Series G in a record round of fundraising
as it strengthens its lead over rival Uber Technologies Inc. and develop its
payment platform.
As a result, Grab will be
valued at more than $6 billion at the close of this round, according to a
source close to the company.
The Singapore-based company
said it would use the new funds to boost its leading position in the
ride-hailing industry and invest in a mobile payment platform called GrabPay. GrabPay
Credits, a cashless top-up payment option, has grown 80% month-on-month since
its launch in December 2016, the company claims.
The funding round comes less
than a year since Grab confirmed raising $750 million in Series F round.
So far, Grab said it is the
most dominant on-demand transportation platform in Southeast Asia with a market
share of 95% in third-party taxi-hailing and 71% in private vehicle hailing. It
operates private car, motorcycle, taxi and carpool services in 65 cities across
seven countries in the region, with 1.1 million drivers and facilitates nearly
3 million rides a day.
Southeast Asia has become a
center battleground for technology startups competing for a market of over 600
million people, with a growing and increasing middle class and a youthful,
internet-savvy demographic.
Grab said that Didi and
Softbank will continue to support its vision of helping consumers in Southeast
Asia access safe transportation and financial products while creating
employment opportunities.
“We are delighted to deepen
our strategic partnership with Didi and Softbank,” Anthony Tan, group chief
executive officer and cofounder of Grab, said in a statement.
“With their support, Grab
will achieve an unassailable market lead in ridesharing , and build on this to
make GrabPay the payment solution of choice for Southeast Asia,” said Tan.
Cheng Wei, Didi founder and chief executive, said by deepening strategic partnership, Didi and Grab reaffirm their shared commitment to innovating localized solutions to global urban development challenges from the world’s fastest growing marketplaces.
“Starting
with transport, Grab is establishing a clear leadership in Southeast Asia’s
internet economy based on its market position, superior technology, and truly
local insight,” said Cheng Wei in a statement.
“Both companies look forward to working
together with communities and policymakers across Asia and fully embrace the
extraordinary opportunities in the upcoming transportation revolution.”
Softbank and Grab
Softbank invested in Grab that led its $250
million round back in 2014, also its $750 million round in September 2016.
The Japanese technology giant, which is also an
investor in Ola and 99, is also expanding its footprint in the transportation
industry, recently co-leading a $159 million round in technology company Nauto
with Greylock Ventures.
Earlier this year, Grab bought Indonesian
payment service Kudo, and it has said it is seeking more acquisitions to
support rapid growth.
In February, Grab said its plan to invest $700
million in Indonesia over the next four years, supporting the Indonesian
government’s plan of becoming the region’s largest digital economy by 2020.
Grab said it would set up a research and development facility in the capital
city of Jakarta centered on developing
technology for the local market.
Currently, Grab competes with the likes of
Uber, the world’s largest ride -hailing service, and Indonesia’s Go-Jek. Earlier
this month, Tencent Holdings Ltd invested around $100 million to $150 million
in Go-Jek, according to a source.
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Southeast Asian Taxi App Grab Raises $2.5B in the Latest Funding Round
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