Grab raises additional US$1 billion from financial firms

Grab raises additional US$1 billion from financial firms

FILE PHOTO - Commuters pass Grab transport booking service app advertisements at a train station i
Commuters pass Grab transport booking service app advertisements at a train station. (File photo: Reuters)

SINGAPORE: Ride-hailing company Grab said on Thursday (Aug 2) it has secured new investment of US$1 billion from a clutch of financial firms, including global asset manager OppenheimerFunds and China's Ping An Capital.

The funding comes after Toyota Motor in June bought a US$1 billion stake in Grab as the lead investor in a financing round launched following Grab's acquisition of Uber's operations in Southeast Asia.

READ: Toyota to invest US$1 billion in ride-hailing firm Grab

READ: Grab buys Uber’s Southeast Asia operations – who are the winners and losers?

Other investors in the new funding include Microsoft co-founder Paul Allen's Vulcan Capital, Macquarie Capital, All-Stars Investment and Lightspeed Venture Partners, Grab said in a press release.

"We continue to see significant demand from investors, both financial investors and strategic investors on a global basis," Grab president Ming Maa told Reuters.

"We will continue opening the financing for certain investors that we think will add value," he said, but declined to say how much the company aims to raise.

READ: Grab defends position in Uber deal to Singapore's anti-monopoly watchdog

Six-year-old Grab, which counts Chinese ride-hailing firm Didi Chuxing and Japan's SoftBank Group among its backers, was valued at just more than $10 billion after Toyota's investment, a source familiar with the matter said at the time.

Grab, which started as a taxi-booking app, has been transforming itself into a consumer technology group, offering services such as digital payments and food delivery.

Earlier this year, Uber sold its Southeast Asian business to Grab in exchange for a stake in the Singapore-based firm, in a deal that has prompted regulatory scrutiny.

READ: Why the Grab-Uber deal is making some uneasy  

Grab said it would use the new funds to expand its online-to-offline services in Southeast Asia.

It plans to use a significant portion of the proceeds to invest in Indonesia, Southeast Asia's biggest market where Go-Jek is the dominant player in ride-hailing.

Go-Jek counts Chinese tech giant Tencent Holdings, private equity firms KKR & Co, Warburg Pincus and venture capital player Sequoia Capital among its investors.

Source: CNA/Agencies/nc(cy)