Automotive manufacturers Hyundai and Kia Motors agreed today to invest $250m in Singapore-based ride hailing and online-to-offline platform Grab in connection with a partnership deal.
The capital will be added on to an ongoing funding round that now totals $2.7bn, the company said, meaning it has raised a total of more than $6.6bn since it was founded in 2012 as GrabTaxi. It intends to close it at $3bn by the end of 2018.
The round also includes $1bn from automotive manufacturer Toyota, another $1bn from insurer Ping An’s Ping An Capital unit and Mirae Asset – Naver Asia Growth Fund, formed by internet company Naver and Mirae Asset Daewoo, and $200m from travel and accommodation booking service Booking Holdings.
Software provider Microsoft and Citi Ventures, the corporate venturing arm of financial services firm Citi, are also backing the round, as are Goldman Sachs Investment Partners and OppenheimerFunds, the company revealed today.
Grab has grown its on-demand ride service into a more wide-ranging offering spanning food and package delivery as well as mobile payment across eight Southeast Asian countries.
The carmakers invested as part of an agreement where they will work with Grab to set up electric vehicle (EV) initiatives in Southeast Asia, and its drivers will receive benefits if they use EVs. The first such scheme is slated to begin in Singapore next year.
The partnership will also generate data on how EVs operate in the hot, humid conditions of the region and how they can be customised for mobility platforms.
Youngcho Chi, chief innovation officer for Hyundai, said: “As home to one of the world’s fastest growing consumer hubs, Southeast Asia is a huge emerging market for EVs.
“With its unparalleled footprint across the region, and an ever-expanding base of customers and merchants, Grab is an invaluable partner that will help accelerate the adoption of electric vehicles in Southeast Asia.”
Hyundai first invested in the company in January this year, providing an undisclosed amount while signing a strategic partnership agreement. Another carmaker, Honda, and financial services firm Tokyo Century had each invested undisclosed sums in late 2016.
Toyota also took part in Grab’s last round, a $2.5bn series G closed in August 2017 that included telecommunications firm SoftBank, which had been rumoured to be investing in the latest round, on-demand ride service Didi Chuxing and media company Emtek.
SoftBank initially provided $250m in funding for Grab in late 2014 and joined Didi Chuxing, Tiger Global, Coatue Management and China Investment Corporation for a $350m series E round in 2015, before leading a $750m series F the following year.
Grab’s other investors include online travel agency Qunar, which took part in the company’s $15m series B round in 2014 alongside GGV Capital and Vertex Venture Holdings. The company raised $65m from Tiger Global Management, Hillhouse Capital and its existing backers in a series C round the same year.
