Singapore-based ride hailing platform Grab is set to invest $100m in startups based in Indonesia as part of a $700m push backed by the Indonesian government.
The Grab 4 Indonesia initiative will involve Grab investing $700m over the next four years to help Indonesia, its largest market by users, expand its digital economy. The company will open an R&D centre and expand access to mobile payment and financing in the nation.
The $100m will be provided through a social impact fund and will go to mobile and financial services technology developers with the aim of increasing financial inclusion across the country.
Ming Maa, Grab’s president, told TechCrunch the $100m is a minimum investment, and that the fund is not a dedicated corporate unit. Maa and other executives will oversee the activities alongside the company’s Indonesian team.
Grab plans to also supply portfolio companies with technical assistance in order to help them bring their products to market. It has raised more than $1.4bn in venture funding, most recently closing a $750m round in September 2016 at a $3bn valuation.
Anthony Tan, co-founder and CEO of Grab, said in a statement: “As the largest homegrown technology startup in Southeast Asia, we are excited to make this significant investment in Indonesia’s future and accelerate their transition to a fully integrated digital economy.
“The ‘Grab 4 Indonesia’ 2020 master plan underlines our deep commitment to driving Southeast Asia forward and our excitement about the tremendous opportunities we see in Indonesia to help build and advance the country’s digital infrastructure and ecosystem.”