Southeast Asian cab-hailing service, Grab, has raised $2 billion led by Japanese conglomerate SoftBank and its Chinese taxi-hailing counterpart Didi Chuxing. The company is eyeing an additional $500 million from existing and new investors before the round gets over, which will bring the total investment of this investment round to $2.5 billion, claiming it to be the largest funding ever in the history of Southeast Asian tech companies.
Grab states that it holds a market share of 95% in third-party cab hailing and 71% in private vehicle hailing in the region, offering services in 65 cities across Singapore, Malaysia, Myanmar, Indonesia Thailand, Vietnam and Philippines. With the funding the Uber competitor aims to strengthen its market lead and invest in GrabPay payments solution.
“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,” said Anthony Tan, Group CEO and Co-founder, Grab.
“With their support, Grab will achieve an unassailable market lead in ride sharing, 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.”
The company also expects DiDi and SoftBank to support Grab’s vision of helping consumers in Southeast Asia access safe transportation and financial products whilst creating employment opportunities.
“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,” said Cheng Wei, Founder and CEO, DiDi Chuxing.
“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.”
Last year after months of negotiations, the ride-hailing platform had raised $750 million led by SoftBank, bringing its cash position to about $1 billion and increased its valuation to $2.3 billion to $3 billion.
Masayoshi Son, Chairman and CEO of SoftBank Group said, “Grab is using technology to address transportation and payments, some of the biggest challenges present in Southeast Asia, and we believe Grab is a tremendously exciting company in a dynamic and promising region. SoftBank is excited to deepen this partnership and we look forward to continuing to support Grab’s journey.”