“Grab, the Southeast Asian US$15 billion ride-hailing and food delivery giant backed by SoftBank and Uber, is accelerating its expansion into financial services with a new fundraising by its fintech subsidiary. Grab is betting on growing demand from the region’s rising class of merchants and consumers,” reported The Information.
The ride-hailer’s fintech unit, Grab Financial Group, has raised over US$300 million in fundraising led by South Korea’s Hanwha Asset Management, according to the report, citing a source.
Grab declined to comment on the matter.
Launched in 2018, the financial arm offers services including micro-investment, payment, insurance, and loans for merchants, consumers, and drivers.
This investment marks the first time that Grab has raised money from outside investors for the unit. Following the fundraising, Grab still owns a majority stake in Grab Financial Group.
The move suggests that the financial arm may go public separately from its parent company, although Grab hasn’t publicly discussed its IPO plans, said the report.
Earlier this week, the ride-hailing giant claimed that its net revenues jumped by about 70% in 2020 compared to the year prior and that it achieved segment breakeven for its ride-hailing business.
However, it’s expected that Grab will remain unprofitable until 2023, partly because of its continued spending in financial services, noted the bond credit rating agency Moody’s.
This development comes after reports surfaced that Gojek was in advanced talks with Tokopedia for a possible merger.
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