Grab to tap Didi, SoftBank for funds in $2.5 bn top-up
GRAB, Uber Technologies’ biggest ride-hailing competitor in Southeast Asia, said it expects to raise US$2.5 billion in its latest financing round that will help bolster its position in the region and grow its payments platform.
Chinese peer Didi Chuxing and Japan’s SoftBank Group Corp, both of which are existing investors, will invest up to US$2 billion to lead the current financing round, it said in its statement on Monday yesterday.
Grab expects to raise an additional US$500 million, bringing the total to US$2.5 billion in this round, which it said would be the largest single financing in Southeast Asia.
The firm will be valued at more than US$6 billion at the close of this round, a source close to the |company told Reuters
The Singapore-headquartered company says it has a Southeast Asia market share of 95 per cent in third-party taxi-hailing and 71 per cent in private vehicle |hailing. It operates private car, motorcycle, taxi and carpooling services across seven countries in the region, with 1.1 million drivers.
“With their (Didi’s and SoftBank’s) support, Grab will achieve an unassailable market lead in ride-sharing and build on this to make GrabPay the payment solution of choice for Southeast Asia, Anthony Tan, group chief executive officer and co-founder of Grab, said in the statement.
The co-founders at Grab's fifth-anniversary celebration last month.
The start-up was initially known as MyTeksi, but the name was later changed for a more regional appeal.