Grab raises US$850 million to expand into financial services
- Grab’s move into the financial sector forms part of its efforts to build a super app for on-demand services in Southeast Asia
Grab, Southeast Asia’s most valuable start-up, has raised more than US$850 million from Japan’s Mitsubishi UFJ Financial Group and TIS to bankroll its expansion into financial services in the region.
Backed by tech conglomerate SoftBank Group Corp, Grab has been expanding into financial services, building on its ride-hailing, food delivery and e-wallet offerings, in a bid to become a one-stop shop for on-demand services in Southeast Asia.
Tie-ups between tech start-ups and banks are becoming more common in Southeast Asia, where widespread smartphone use promises greater access to clients who have traditionally been neglected by the financial system.
Grab will co-develop financial products and solutions with the two investors, company president Ming Maa said in a statement. The investments demonstrate “their confidence in Grab’s super app strategy and our ability to build a sustainable long-term business”, he said.