New financing to support Grab’s efforts in strengthening its dominant market position in on-demand transportation and payments in Southeast Asia
South-East Asian ride-hailing firm Grab has raised $2.5billion (£1.9billion) in the region’s largest investment to date.
Didi Chuxing and SoftBank invested up to $2bn to lead Grab’s financing round, with the strategic investment set to deepen the realtionship between both companies and Grab. The remaining $500million is anticipated to be raised from new and existing investors.
Running the largest Southeast Asian transportation network, Grab currently holds 95% market share in South East Asia for third party taxi-hailing and 71% in the private tax-hailing sector. The ride-hailing app has been downloaded onto over 50 million devices, with almost 3 million daily rides taken.
Anthony Tan, Grab Group CEO and Co-founder, said, “We are delighted to deepen our strategic partnership with DiDi and SoftBank. We’re encouraged that these two visionary companies share our optimism for the future of Southeast Asia and its on-demand transportation and payments markets, and recognize that Grab is ideally positioned to capitalize on the massive market opportunities.
“With their support, Grab will achieve an unassailable market lead in ridesharing, and build on this to make GrabPay the payment solution of choice for Southeast Asia. We look forward to continuing to work with our valued partners in the future.”
As well as leading the market and offering a range of extended services, the company is expected to continue strengthening its market position by investing in GrabPay – its own mobile payments businesses, which allows customers to pay for rides and other services.
With Grab gradually investing its services successfully around the region, it further allows the company to fend off competitors like Uber and Indonesian competing firm Go-Jek.
Cheng Wei, founder and CEO of DiDi, said, “Starting with transport, Grab is establishing a clear leadership in Southeast Asia’s internet economy based on its market position, superior technology, and truly local insight. By deepening our strategic partnership, DiDi and Grab reaffirm our shared commitment to innovating localized solutions to global urban development challenges from the world’s fastest growing marketplaces. Both companies look forward to working together with communities and policymakers across Asia to fully embrace the extraordinary opportunities in the upcoming transportation revolution.”