Grab raises US$2bil in financing round
By Digital News Asia July 24, 2017
- Grab expects to raise US$2.5 billion in total in current financing round
- Funds will be used to strengthen market position in on-demand transportation, payments in SEA
GRAB, an on-demand transportation and mobile payments platform in Southeast Asia, on July 24 announced that Didi Chuxing (DiDi), a one-stop mobile transportation platform, and SoftBank Group Corp, a global technology leader driving the Information Revolution, will invest up to US$2 billion to lead Grab’s current financing round.
Grab anticipates that it will raise an additional US$500 million, bringing the total to US$2.5 billion in this round from existing and new investors. This is the largest single financing in the history of Southeast Asia.
Grab group CEO and co-founder Anthony Tan (pic) said, “We are delighted to deepen our strategic partnership with DiDi and SoftBank. We’re encouraged that these two visionary companies share our optimism for the future of Southeast Asia and its on-demand transportation and payments markets, and recognise that Grab is ideally positioned to capitalise on the massive market opportunities.
“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. We look forward to continuing to work with our valued partners in the future.”
DiDi and SoftBank will continue to support Grab’s vision of helping consumers in Southeast Asia access safe transportation and financial products whilst creating employment opportunities.
Grab claims it is by far the most dominant on-demand transportation platform in the region with a market share of 95% in third-party taxi-hailing and 71% in private vehicle hailing.
The company will continue to strengthen its already-leading market position and invest in GrabPay, its proprietary mobile payments solution.
DiDi founder and CEO Cheng Wei said, “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. By deepening our strategic partnership, DiDi and Grab reaffirm our shared commitment to innovating localised solutions to global urban development challenges from the world’s fastest growing marketplaces. Both companies look forward to working together with communities and policymakers across Asia to fully embrace the extraordinary opportunities in the upcoming transportation revolution.”
SoftBank Group Corp chairman and CEO Masayoshi Son said, “Grab is using technology to address transportation and payments, some of the biggest challenges present in Southeast Asia, and we believe Grab is a tremendously exciting company in a dynamic and promising region. SoftBank is excited to deepen this partnership and we look forward to continuing to support Grab’s journey.”
Grab operates the largest transportation network in Southeast Asia and is one of the most frequently used mobile platforms in the region, claiming to carry nearly three million daily rides.
Today, Grab claims that its app has been downloaded onto over 50 million mobile devices, giving passengers access to the region’s largest land transportation fleet comprising over 1.1 million drivers. Grab offers private car, motorbike, taxi, and carpooling services across seven countries and 65 cities in Southeast Asia, with one out of every three passengers using multiple services.
GrabPay Credits, a cashless top-up payments option, has grown more than 80% month-on-month since its launch in December 2016.
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