The funding brings to about $4.5 billion the amount of money the company has collected from investors in the past year.
Wednesday 06, March 2019
(Bloomberg) --Leading Southeast Asian ride-hailing provider Grab raised about $1.5 billion from SoftBank Group Vision Fund, bankrolling its effort to expand into new services across the region.
SoftBank is already a major backer of the Singapore-based start-up, and the latest investment will boost its stake.
Grab founder Anthony Tan is battling Go-Jek for leadership in the Southeast Asian market after vanquishing Uber Technologies in the region last year.
Go-Jek has presented the thorniest challenge, with the Jakarta-based start-up marching into Grab’s home market of Singapore as well as Vietnam and Thailand. Go-Jek, led by Tan’s Harvard Business School classmate Nadiem Makarim, is also raising additional capital to compete for customers and drivers.
Southeast Asia’s two most valuable start-ups are aiming to expand swiftly in everything from mobile payments to food delivery. Go-Jek raised over $1 billion in its ongoing funding round from a clutch of internet giants including Google, JD.com and Tencent Holdings.
Both companies are using the proceeds to shore up their positions in Indonesia and expand around the region, while merging payments with ride-sharing and food delivery to create so-called super apps.
“It is an incredibly dynamic market where the consumer class is rapidly digitising. And within this digitisation, we see tremendous opportunities to continue growing our super-app platform,” President Ming Maa told Bloomberg Television. “We are already profitable in some of our most mature business segments and in our more mature markets.”
Southeast Asia’s best-funded technology start-ups are raking in billions of dollars of investments. The region’s internet firms raised $9.1 billion from venture capitalists, private equity firms and corporate investors in the first half of last year, headed for an all-time record, a report from Google and Temasek Holdings shows. The industry raised $9.4 billion in all of 2017, according to the November research.