The on-demand ride sharing app, Grab, has managed to raise USD$2.0billion from Didi Chuxing and SoftBank Group Corp in their latest round of financing. The total sum is expected to be in the region of USD$2.5billion for this round of financing. This financing round is expected to be the largest in the history of Southeast Asia. Grab, which started off as MyTeksi has since moved regionally and also into the mobile payments space as well.
Grab, the competitor against Uber in Southeast Asia has multiple fronts ranging from third-party taxi hailing and private vehicle hailing, controls the market share. Dominating in both areas, the company continues to strengthen in the region as Uber goes through a patchy time battling lawsuits and leadership issues.
Anthony Tan, Group CEO and Co-founder, said, “We are delighted to deepen our strategic partnership with DiDi and SoftBank. We’re encouraged that these two visionary companies share our optimism for the future of Southeast Asia and its on-demand transportation and payments markets, and recognise that Grab is ideally positioned to capitalise on the massive market opportunities. With their support, Grab will achieve an unassailable market lead in ridesharing and build on this to make GrabPay the payment solution of choice for Southeast Asia. We look forward to continuing to work with our valued partners in the future.”
Cheng Wei, founder and CEO of DiDi, said, “Starting with transport, Grab is establishing a clear leadership in Southeast Asia’s internet economy based on its market position, superior technology, and truly local insight. By deepening our strategic partnership, DiDi and Grab reaffirm our shared commitment to innovating localized solutions to global urban development challenges from the world’s fastest growing marketplaces. Both companies look forward to working together with communities and policymakers across Asia to fully embrace the extraordinary opportunities in the upcoming transportation revolution.”
Masayoshi Son, Chairman and CEO of SoftBank Group Corp., said, “Grab is using technology to address transportation and payments, some of the biggest challenges present in Southeast Asia, and we believe Grab is a tremendously exciting company in a dynamic and promising region. SoftBank is excited to deepen this partnership and we look forward to continuing to support Grab’s journey.”
This new source of funding should value Grab to be around the USD$6 billion mark, whilst competitor Uber is currently valued at USD$50 billion. Lyft, on the other hand, is currently valued at USD$7.5 billion. Grab currently operates in 65 cities across Southeast Asia and has given around 620 million rides so far. The Grab app has been downloaded over 50 million devices boasting 1.1 million drivers across their private transportation networks such as cars, taxi, motorbikes, and carpooling services.
