Singapore-based on-demand ride provider Grab confirmed today that it has raised $1.46bn from telecommunication firm SoftBank’s Vision Fund, increasing its series H round to more than $4.5bn in the process.
The round already includes $1bn from Toyota, $250m from fellow carmakers Hyundai and Kia Motors, $200m each from travel service Booking Holdings and shopping centre operator Central Group, $150m from motor vehicle producer Yamaha and $50m from financial services firm Kasikornbank.
Ping An Capital, a subsidiary of insurer Ping An, has also invested in the round, as has software provider Microsoft, leasing service Tokyo Century and Mirae Asset – Naver Asia Growth Fund, which is backed by internet company Naver.
The corporates are being joined by OppenheimerFunds, Cinda Sino-Rock Investment Management, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners and Macquarie Capital, a subsidiary of investment banking firm Macquarie.
Formerly known as GrabTaxi, Grab operates a ride hailing service that spans eight Southeast Asian countries, and is looking to expand both geographically through partnerships with some of its corporate investors, and in adjacent markets such as package and food delivery and mobile payments.
A source told TechCrunch the round valued Grab at $14bn, and the company told the website that the round is not yet officially closed.
The company will put the series H funds toward expanding its ‘super app’ vision by growing its adjacent services and introducing new offerings on its open Grab platform that will include online video, insurance, healthcare and travel booking, the latter two through partnerships with Ping An and Booking Holdings.
Anthony Tan, co-founder and CEO of Grab, said: “SoftBank and the Vision Fund are long-standing strategic investors and we are grateful for their continued support. The investment is a clear statement of belief in our vision to grow Southeast Asia’s technology ecosystem as the region’s number one super app.
“Looking ahead, we aim to continue improving the lives of many millions of Southeast Asians by providing enhanced income opportunities through our platform, and giving our users more choice and convenience.”
The latest cash influx increased Grab’s overall funding to about $8.4bn, having received $2.5bn from SoftBank, Hyundai, Chinese ride hailing platform Didi Chuxing and Toyota’s Next Technology Fund in a series G round that closed at a $6.5bn post-money valuation in January 2018.
Grab had raised a total of about $90m from travel agency Qunar, Vertex Venture Holdings, Temasek, GGV Capital, Tiger Global Management and Hillhouse Capital before SoftBank supplied $250m in series D funding for the company in 2014.
SoftBank, Didi Chuxing (then known as Didi Kuaidi), China Investment Corporation, Coatue Management and Tiger Global added $350m in a 2015 series E round that was followed by a $750m series F led by SoftBank and backed by unnamed existing investors the following year.
David Thevenon, a partner at SoftBank Investment Advisers, which oversees Vision Fund’s investments, said: “We have been working alongside Grab for a number of years and are privileged to support the evolution of its user-driven technologies.
“This investment will help the company explore exciting new opportunities across on-demand mobility, delivery and financial services as it continues to grow its offline-to-online platform across Southeast Asia.”
The announcement came days after Grab’s biggest rival in the region, Go-Jek, increased its series F round, which has a targeted close of $3bn, to approximately $1.1bn. It also represents the latest in a series of 10-figure investments by Vision Fund in transport tech companies including Uber, GM Cruise and Chehaoduo.
