Singapore-based ride hailing company Grab has obtained $1bn from carmaker Toyota at a valuation of more than $10bn, TechCrunch reported today.
The money came directly from Toyota, rather than through its investment vehicle Next Technology Fund, which took part Grab’s $2.5bn series G round last year.
Founded in 2012 as GrabTaxi, Grab started out with a taxi booking platform called MyTeksi but has since grown to offer a full range of ride hailing services, including a chauffeured service and carpooling.
Grab has also introduced a food delivery service and a mobile payment platform. It currently operates in eight countries across Southeast Asia.
Toyota will be entitled to a seat on Grab’s board of directors and will be able to nominate an executive. Grab will collaborate with the Toyota Mobility Service Platform, which is developing products such as user-based insurance and predictive car maintenance.
Grab negotiated to take over the Southeast Asian business of its US-based rival Uber in February 2018, giving Uber a sizeable stake in Grab in return.
Last week, Grab launched an investment fund, Grab Ventures, and an accelerator, Velocity.
In addition to announcing Toyota’s latest investment, Grab has confirmed it closed a $2.5bn series G round earlier this year. The round was co-led by its peer Didi Chuxing and internet and telecoms conglomerate SoftBank with a $2bn commitment in July 2017.
The series G, which valued Grab at $6bn, attracted Toyota’s Next Technology Fund in August 2017 and car manufacturer Hyundai in January 2018. Other investors have not been named.
Grab had raised $1.4bn prior to its series G round from investors including SoftBank, Didi Chuxing, carmaker Honda, travel services provider Qunar and financial services provider Tokyo Century.
Shareholders also include China Investment Corporation, Coatue Management, Tiger Global Management, GGV Capital, Hillhouse Capital Management and Vertex Ventures, the venture capital unit of Singapore state-owned investment firm Temasek.