Small-vehicle manufacturer Yamaha Motor agreed today to invest $150m in Singapore-based on-demand ride provider Grab through a strategic partnership deal.
Formerly known as GrabTaxi, Grab operates a ride hailing service that spans eight Southeast Asian countries, and which now includes food and package delivery, all of which can be paid for through its GrabPay platform.
Yamaha’s investment will be added to a funding round that now totals $2.85bn which Grab has said it intends to close at $3bn by the end of 2018. It increased the overall funding raised by the company to more than $6.75bn.
The partnership will involve Yamaha collaborating with Grab to establish a motorcycle-based ride hailing platform catering to Southeast Asian customers, combining the former’s expertise in motorcycle production and safety with Grab’s mobility resources.
Takuya Kinoshita, chief general manager of Yamaha’s motorcycle business, said: “We anticipate significant advancements through this collaboration with Grab via strategic partnership.
“As well as increasing user and driver safety and confidence through incorporation of Yamaha Motor technology in new user-participation type transport systems, we also anticipate further increases in the value of motorcycles in future mobility systems, and the creation of new mobility solutions.”
The latest round also features carmakers Toyota, Hyundai and Kia Motors, travel booking platform Booking Holdings, software provider Microsoft and Ping An Capital and Citi Ventures, subsidiaries of insurance group Ping An and financial services firm Citi.
Mirae Asset – Naver Asia Growth Fund, a joint venture between internet group Naver and asset manager Mirae Asset Daewoo, is also participating, as are investment banking firm Goldman Sachs’ Investment Partners unit and OppenheimerFunds.
Toyota and Hyundai are both existing investors in Grab, whose backers also include fellow automotive manufacturer Honda, telecommunications and internet group SoftBank, Chinese ride hailing platform Didi Chuxing, media company Emtek and travel agency Qunar.
In addition to the corporates, financial services firm Tokyo Century, Tiger Global Management, Coatue Management, GGV Capital, Hillhouse Capital, Vertex Venture Holdings and China Investment Corporation are also among the company’s earlier investors.
