Singapore-based ridesharing startup Grab, recently announced that it has raised more than $850mn from Japan’s Mitsubishi UFJ Financial Group Inc and TIS Inc. With the recent investment, the company plans to bankroll its expansion into financial services in the region.
According to joint statements from the companies, the sum includes $706 million from Japan’s largest bank MUFG, and $150 million from the data center and cloud services provider TIS.
The Softbank-backed startup has been expanding into financial services in an effort to become a one-stop-shop for on-demand services in Southeast Asia. The startup currently has ride-hailing, food delivery, and e-wallet as offerings.
In an official statement, Grab President Ming Maa said that Grab will co-develop financial products and solutions with the two investors. He added that the investments demonstrate “their confidence in Grab’s super-app strategy and our ability to build a sustainable long-term business.”
Commenting on the recent investment, Chief Digital Transformation Officer of MUFG, Hironori Kamezawa, said in the statement, “We are excited to be able to provide customers with next-generation financial services by combining Grab’s advanced technologies and data management expertise with our financial knowledge and know-how.”
As per media reports, Grab will give “first-choice bank” status to MUFG and its Southeast Asian units, including PT Bank Danamon Indonesia and Bangkok-based Bank of Ayudhya PCL.
Under Grab’s deal with Tokyo-based TIS, the companies will work together on digital payments infrastructure in Southeast Asia and Japan to enable better adoption of cashless options, the firms said in a separate statement.
The recent infusion of funds will help the company put an end to the long rumor of merging with its regional rival Gojek. Many media reports have mentioned that both the startups were 3.5 months into talks of a merger soon after Gojek founder and former CEO Nadiem Makarim left the company in October to join Indonesian President Joko Widodo’s cabinet.
Gojek has reportedly declined the media reports mentioning the merger.
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