Singapore’s Grab raises US$1.5 Billion from SoftBank fund as it seeks to expand into new services

Leading Southeast Asian ride-hailing provider Grab raised about US$1.5 billion from SoftBank Group Corp’s Vision Fund, bankrolling its effort to expand into new services across the region.

The funding brings to about US$4.5 billion the amount of money the company has collected from investors in the past year, it said. SoftBank is already a major backer of the Singapore-based start-up, and the latest investment will boost its stake.

Grab founder Anthony Tan is battling Go-jek for leadership in the Southeast Asian market after vanquishing Uber Technologies in the region last year. Tan is holding a press conference today in Indonesia, its rival’s home turf, and plans to spend a significant portion of the latest proceeds in the country.

Go-jek has presented the thorniest challenge, with the Jakarta-based start-up marching into Grab’s home market of Singapore as well as Vietnam and Thailand. Go-jek, led by Tan’s Harvard Business School classmate Nadiem Makarim, is also raising additional capital to compete for customers and drivers.

Southeast Asia’s two most valuable start-ups are aiming to expand swiftly in everything from mobile payments to food delivery. Go-jek raised over US$1 billion in its ongoing funding round from a clutch of internet giants including Google, JD.com and Tencent Holdings, Bloomberg reported last month. Both companies are using the proceeds to shore up their positions in Indonesia and expand around the region, while merging payments with ride-sharing and food delivery to create so-called super apps.