Ride-sharing service Grab expects US$2.5 billion funding injection as it prepares to go head-to-head with Uber
Chinese peer Didi Chuxing and Japan’s SoftBank Group, both of which are existing investors, will contribute up to US$2 billion to lead the current financing round
Southeast Asian ride-hailing service Grab expects to raise US$2.5 billion in a record round of fundraising to cement its lead over Uber Technolgies in the region and grow its payments platform.
Southeast Asia has become a key battleground for technology startups vying for a market of more than 600 million people, with a burgeoning middle class as well as a youthful, internet-savvy demographic.
Grab’s Chinese peer Didi Chuxing and Japan’s SoftBank Group, both of which are existing investors, will contribute up to US$2 billion to lead the current financing round, it said in its statement on Monday.
The firm 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 ever single financing in Southeast Asia.
Grab will be valued at more than US$6 billion at the close of this round, according to a source close to company.
With Didi’s and SoftBank’s support, Grab will achieve an unassailable market lead in ride-sharing
The Singapore-headquartered company said 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.