Grab Acquires USD1.5 Billion in Investment Funding
Ride-sharing giant GrabTaxi Holdings Pte. Ltd. revealed on Wednesday, March 6, that it has secured USD1.5 billion in investment from a fund managed by Japan’s SoftBank. The monetary infusion will be used primarily to help Grab expand to Indonesia, where rival Go-Jek reigns.
Grab has experienced significant growth in the Southeast Asian region after it bought US-based rival Uber in March last year. In return, Uber now owns a 27.5 percent stake in Grab.
The new investment follows the USD2 billion funding that the ride sharing company received from Toyota and other big name brands such as Hyundai Motor, Microsoft and Oppenheimer Funds to finance its entry or expansion in Southeast Asian markets such as Singapore, Thailand, Vietnam and Philippines.
In contrast, rival Go-Jek counts Google, Chinese internet giant Tencent and Singapore’s sovereign wealth fund Temasek as its financiers. The company has recently launched in Singapore, where Grab is headquartered.
Grab said it is expanding its food and parcel delivery service and financial services, with plans to add new offerings such as insurance, hotel bookings, digital healthcare, and video-on-demand.