Singapore-based ride hailing service Grab has begun talks with investors including insurance firms AIA and Prudential to raise $300m to $500m for its financial services subsidiary, Reuters reported today.
The talks are at an advanced stage and the company intends to secure the funding by the end of next month at a valuation of about $2bn, according to people with knowledge of the matter.
Formerly known as GrabTaxi, Grab operates an app-based on-demand ride service that spans eight countries in Southeast Asia. It has also branched out into adjacent services, and its Grab Financial Group offers digital payment services, insurance, loyalty schemes and business financing.
Grab reportedly expects about half of the prospective funding to come from insurance providers, and the capital would allow it to expand the financial services offered through the unit to incorporate wealth management.
The cash could also support Grab’s drive for a Singaporean online banking licence. It applied for such a licence in 2019 in partnership with telecoms firm Singapore Telecommunications.
Prudential and AIA are interested in investing due to the potential of accessing Grab Financial Group’s data and technology, the sources told Reuters. AIA recently led a $32m round for medical appointment booking service Practo last month.
