Automotive manufacturer Hyundai has invested an undisclosed amount in Singapore-based ride hailing service Grab as part of a strategic partnership agreement the companies signed on Wednesday.
Grab’s on-demand ride platform reaches customers in Singapore as well as Indonesia, Malaysia, Thailand, Philippines, Vietnam, Burma and Cambodia, and it is also branching out into digital payment technology.
The investment will be added to a series G round Grab intends to close at $2.5bn. Telecommunications firm SoftBank and ride on-demand ride service Didi Chuxing invested $2bn in July 2017 before carmaker Toyota’s Next Technology Fund added an undisclosed sum in August.
The partnership will allow Hyundai to explore the ride hailing sector as it looks to enhance its mobility offering. The companies plan to jointly develop services for customers in Southeast Asia beginning with a mobility service platform that is compatible with Hyundai’s plug-in and hybrid Ioniq Electric range.
Young Cho Chi, Hyundai’s chief innovation officer, said: “Hyundai’s strategic investment in Grab marks the beginning of an exciting new partnership between the two parties, bringing Hyundai one step closer to realising its vision for future mobility.
“Grab’s expertise in the Southeast Asian market coupled with Hyundai’s eco-vehicle leadership will bring innovative services to customers.”
Grab, which was founded as GrabTaxi, had raised $1.4bn prior to the series G round, from SoftBank, Didi Chuxing, carmaker Honda and travel services provider Qunar.
Financial services provider Tokyo Century, China Investment Corporation, Coatue Management, Tiger Global Management, GGV Capital, Hillhouse Capital Management and Vertex Ventures are also among the company’s investors.