Published On: Mon, Aug 7th, 2017

Uber Rival Grab to Raise $2.5 billion in Latest Financing

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Uber RivalAn Uber rival, the Southeast Asian ride-hailing company Grab expects to raise $2.5 billion in financing. The source would mostly be China’s Didi Chuxing and Japan’s Softbank, since Grab has started to take lead over rival Uber.

China’s ride hailing leader, Didi, and mobile giant SoftBank will invest up to $2.0 billion and another $500 million is expected to pour in from other existing and new investors.

Grab claimed that this will be the largest single financing in Southeast Asia. Didi and SoftBank are existing investors in Grab.

The Singapore-based firm said its funds would be used to further uphold its leading position in the ride hailing industry and would also invest in a mobile payment platform called GrabPay.

Anthony Tan, Grab’s group chief executive and co-founder said that they were delighted to deepen their strategic partnership with Didi and SoftBank.

Grab, with the support of Didi and SoftBank would achieve irrefutable market lead in the ride-hailing industry and would build the GrabPay, the payment solution of choice for Southeast Asia. Grab said it has a market share of 95 percent in third-party taxi-hailing and 71 percent in private-vehicle hailing in Southeast Asia, far ahead of main rival Uber.

Grab has presence in seven countries and 65 cities across Southeast Asia, it offers private car, taxi, motorbike and carpooling services with a region of 650 million people.

Didi founder and chief executive Cheng Wei said that Grab began with transport and has established a clear leadership in Southeast Asia’s internet economy based on its market position, superior technology and local insights.

Both companies look forward to working together with communities and policymakers across Asia to fully embrace the extraordinary opportunities in the upcoming transportation revolution.

According to Masayoshi Son, chairman and chief executive of SoftBank, Grab is a tremendously exciting company in a dynamic and promising region.

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