Grab secured US$1.46 billion investment from the SoftBank Vision Fund in March, the Singaporean ride hailer announced.
This capital injection from SVF brings the total financing secured in Grab’s current Series H round to over US$4.5 billion. Other investors in this round include Toyota Motor Corporation, Oppenheimer Funds, Hyundai Motor Group, Booking Holdings, Microsoft Corporation, Ping An Capital, and Yamaha Motor.
“SoftBank and the Vision Fund are long-standing strategic investors and we are grateful for their continued support. The investment is a clear statement of belief in our vision to grow Southeast Asia’s technology ecosystem as the region’s Number 1 super app. Looking ahead, we aim to continue improving the lives of many millions of Southeast Asians by providing enhanced income opportunities through our platform, and giving our users more choice and convenience.” Anthony Tan, Grab’s Co-Founder and CEO said in a statement. Under his leadership, the company has expanded into eight countries across Southeast Asia.
Grab will use the fresh capital to expand its verticals such as financial services, food delivery, parcel delivery, content and digital payments, and roll out new services announced in 2018. Built on Grab’s open platform, GrabPlatform, these services include on-demand video, in partnership with HOOQ; digital healthcare, in partnership with Ping An Good Doctor; insurance, in partnership with ZhongAn International; and hotel bookings, in partnership with Booking Holdings.
In particular, Grab plans to use a significant portion of the funds in Indonesia, where it is the leader in on-demand transport with 60 percent of the two-wheel market and 70 percent of the four-wheel market.
On a group level, Grab’s transport business has grown robustly since the merger with Uber in Southeast Asia, almost doubling its revenue from March 2018 to December 2018. GrabFood’s revenue grew 45 times in that time period. GrabFood, the only regional food delivery player, is present in six countries across 199 cities. In 2018, Grab Financial Group became the only platform to have access to e-money licenses across six of the largest Southeast Asian economies.
Since its launch in March 2018, Grab Financial Group has seen its monthly transactions grow by almost five times to December 2018. In the same period, GrabExpress also increased instant and same-day delivery volumes by more than three times regionally, and is now available in 150 cities.
The past year has seen a significant expansion of the Grab ecosystem through partnerships with global industry leaders such as Toyota, Hyundai, Microsoft and Mastercard. Grab also inked partnerships with national champions and regional industry leaders like Thailand’s Central Group and Kasikornbank, Indonesia’s OVO, Bank BTN and Bank Mandiri, Singapore’s United Overseas Bank, Philippines’ SM Investment Corporation, Vietnam’s Moca and Malaysia’s Maybank, amongst others
The startup plans to raise another $2 billion from SoftBank and other investors by the end of this year, hoping to use those funds to make at least six acquisitions or investments in tech companies, President Ming Maa told the Nikkei Asian Review on Monday (April 8).