Grab to raise $2.5 billion as it seeks to stay ahead of Uber in Southeast Asia
Grab today announced that it expects to raise around US$2 billion (S$2.7 billion) from its Chinese peer Didi Chuxing and Japan's SoftBank Group Corp, as it looks to cement its position as market leader in an ongoing battle with Uber and Go-Jek of Indonesia.
Grab expects to raise around US$2 billion (S$2.7 billion) from its Chinese peer Didi Chuxing and Japan's SoftBank Group Corp
The Singapore-headquartered company also said that it expects to raise an additional $500 million, bringing the total to $2.5 billion in this round, claiming that the amount would be the largest-ever single financing in Southeast Asia.
Grab currently has a Southeast Asia market share of 95% in third-party taxi-hailing and 71% in private vehicle hailing. It operates private car, motorcycle, taxi and carpooling services across seven countries in the region.
Meanwhile, Uber is the world's largest ride-hailing service, while Tencent Holdings Ltd has invested around $100 million to $150 million in Go-Jek
Anthony Tan, group chief executive officer and co-founder of Grab said: "With their (Didi and SoftBank's) 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.”
Added Cheng Wei, chief executive officer of Didi Chuxing: "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 Chuxing and Grab reaffirm our shared commitment to innovating localised solutions to global urban development challenges from the world’s fastest growing marketplaces."
Uber recently announced that it was pulling out of Macau, following an ongoing disagreement with local authorities.