Saturday, 21 December 2024
Grab announces Didi Chuxing and SoftBank as lead investors for current round of financing
Grab, the leading on-demand transportation and mobile payments platform in Southeast Asia, announced that Didi Chuxing (“DiDi”), the world’s leading one-stop mobile transportation platform, and SoftBank Group Corp. (“SoftBank”), a global technology leader driving the Information Revolution, will invest up to US$2.0 billion to lead Grab’s current financing round. Grab anticipates that it will raise an additional US$500 million, bringing the total to US$2.5 billion in this round from existing and new investors. This is the largest single financing in the history of Southeast Asia.
DiDi and SoftBank will continue to support Grab’s vision of helping consumers in Southeast Asia access safe transportation and financial products whilst creating employment opportunities. Grab is by far the most dominant on-demand transportation platform in the region with a market share of 95% in third-party taxi-hailing and 71% in private vehicle hailing. The company will continue to strengthen its already-leading market position and invest in GrabPay, its proprietary mobile payments solution.
Anthony Tan, 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.”
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.”
Masayoshi Son, Chairman and CEO of SoftBank Group Corp., 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.”
Grab operates the largest transportation network in Southeast Asia and is one of the most frequently used mobile platforms in the region with nearly 3 million daily rides. Today, the Grab app has been downloaded onto over 50 million mobile devices, giving passengers access to the region’s largest land transportation fleet comprising over 1.1 million drivers. Grab offers private car, motorbike, taxi, and carpooling services across 7 countries and 65 cities in Southeast Asia, with 1 out of every 3 passengers using multiple services. GrabPay Credits, a cashless top-up payments option, has grown more than 80% month-on-month since its launch in December 2016, a testament to consumer trust in Grab’s platform.
Re-disseminated by The Asian Banker
