Ride sharing app Grab has raised US $2bn from a range of investors, led by Toyota, which it says it will use to drive its new ambitions to become an app to plug the online to offline (O2O) gap.
Announced last month, Grab said it would become an ‘everyday super app’, driven by its services such as GrabPay (which hinted at its ambitions early on) and utilising its drivers to create a logistics network for a myriad of services.
The long list of investors that make up the $2bn round includeToyota Motor Corporation (Toyota) has been joined by a slate of leading global financial institutions, including OppenheimerFunds, Ping An Capital, Mirae Asset - Naver Asia Growth Fund, Cinda Sino-Rock Investment Management Company, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners, Macquarie Capital and other investors.
Ming Maa, president of Grab, said: “We are honoured to welcome these top-tier financial institutions into our roster of strategic investors and partners. Grab is today the industry-changing O2O platform that enables millions of consumers and entrepreneurs to come online and drive the digital economy in Southeast Asia. We have seen overwhelming interest from global strategic investors and partners who are keen to partner with us to capture the region’s booming growth.”
In March this year, global ride hailing app Uber conceded to Grab and sold its Southeast Asian business to the local brand. Grab inherited its delivery business alongside the sale, paving the way for Grab Food, another service adding to Grab’s O2O ambitions.
More recently it has announced a parcel delivery service GrabExpress and Grab Fresh, a grocery service in partnership with HappyFresh.
As well as the transformation of its ambitions, Grab also said the investment will be used to continue its march into key Southeast Asian market Indonesia. In Indonesia Grab has a tall order in fighting off competition from incumbent Go-Jek.