Ride-hailing firm Grab says likely to raise funds in near future
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In five years, Grab’s network has grown from 40 drivers in one country to over 930,000 across 55 cities in seven countries including Vietnam.
Ride-hailing firm Grab, Uber Technologies Inc’s largest rival in Southeast Asia, is likely to embark on a round of fundraising as it works to develop new offerings such as financial services, its chief executive told us on Tuesday.
“I can’t specifically give a time line but I can imagine somewhere in the near future, there probably could be more money coming in. That’s probably quite likely,” Anthony Tan, group chief executive officer and co-founder of Grab, said in an interview after an event to mark the firm’s fifth anniversary.
In five years, Grab’s network has grown from 40 drivers in one country to over 930,000 across 55 cities in seven countries including Singapore, Indonesia, Vietnam and the Philippines.
The Singapore-based startup raised $750 million in a funding round in September, which sources said valued the firm at over $3 billion.
Grab’s current investors include Chinese peer Didi Chuxing, China Investment Corp, Japan’s SoftBank Group Corp and Vertex Ventures Holdings – a subsidiary of Singapore state investor Temasek Holdings (Pte) Ltd.
Tan also said Grab is spending less on incentives per transaction even as competition with Uber increased after the U.S. firm exited the Chinese market last year.
Questions & Answers
Q.What new services does Grab plan to develop with the additional funding?
What new services does Grab plan to develop with the additional funding?
Grab is working on developing new offerings, such as financial services. This expansion aims to diversify its business beyond its core ride-hailing operations and is a key reason for the anticipated fundraising round.
Q.How much funding did Grab secure in its last fundraising round?
How much funding did Grab secure in its last fundraising round?
Grab raised $750 million in a funding round in September. This investment valued the Singapore-based startup at over $3 billion, according to sources familiar with the deal at the time.
Q.Which major investors currently have stakes in Grab?
Which major investors currently have stakes in Grab?
Current investors in Grab include Chinese ride-hailing firm Didi Chuxing, China Investment Corp, and Japan's SoftBank Group Corp. Vertex Ventures Holdings, a subsidiary of Singapore's state investor Temasek Holdings, is also an investor.
Q.Has Grab's expenditure on customer incentives changed despite increased competition?
Has Grab's expenditure on customer incentives changed despite increased competition?
Yes, Grab is spending less on incentives per transaction. This reduction comes even as competition with Uber has intensified, particularly after the US firm withdrew from the Chinese market last year, according to its chief executive.
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