Grab rebranding Singapore-2

Ride-hailing platform Grab has announced it has raised US$750 million (RM3.1 billion) in equity financing, effectively increasing its total capital position to over US$1 billion (RM4.14 billion).

Japanese multinational telecommunications company SoftBank, a long-term strategic partner in the ride-hailing company, led an expanded, oversubscribed Series F round, with participation from both new and existing investors. Its previous Series E funding exercise in August last year was reported to have raised it US$350 million (RM1.4 billion).

Having added to its coffers, the company says it will leverage its increased capital position to continue expanding its transportation services in Southeast Asia, especially in Indonesia as well as developing GrabPay, its mobile payment solution.

It said that its GrabCar and GrabBike services grew by 250 times in one year in the republic (as of the end of 1H2016), and believes the business will continue to grow exponentially. Aside from expanding its range of services in Jakarta, the company says it will be introducing its localized services to more major cities across the country.

Grab rebranding Singapore-1

As for GrabPay, the company has begun a partnership with Mandiri, Indonesia’s second largest local bank, to offer a mobile wallet service. In Indonesia, it is also working with long-term partner Lippo Group to implement an e-money payments platform that will enable users to use GrabPay at Lippo’s department stores, hypermarts, cinemas, coffee shops and e-commerce platform.

“Our vision is to drive Southeast Asia transportation forward and transform the region’s mobile internet ecosystem. This latest funding strengthens our ability to pursue those long-term goals as we continue to build on our market leadership. We are particularly excited about the growth opportunity in Indonesia, where we see an almost US$15 billion market for ride-hailing services alone, as well as the potential to extend GrabPay’s platform regionally,” said Grab CEO and co-founder Anthony Tan.

Earlier this month, the company announced a partnership with Citi to enable cardholders to use Citibank points to pay for Grab rides. A first for Asia, the service aims to encourage the convenience of cashless payments to more consumers. It will commence in Singapore and the Philippines, with Malaysia, Indonesia and Thailand to follow shortly.