Ride-Hailing Firm Grab Slated to Raise $2.5 Billion Via Didi Chuxing and Softbank
In a report last Monday, ride-hailing company Grab announced its plan to raise $2.5 billion to reinforce its mobile payment platform and maintain dominance in Southeast Asian market over rival Uber.
The investment program will be lead by the Softbank Group of Japan and Chinese ride-hailing app Didi Chuxing in what is considered the biggest single fundraising in Southeast Asia. According to Reuters, the company will be worth over $6 billion once the financing round is done.
Grab’s anticipated growth comes in the wake of rival firm Uber’s growing concerns. In recent months, Uber has dealt with a criminal investigation involving regulation avoidance, and finding a new CEO to supersede Travis Kalanick.
To date, with close to 3 million rides every day, Grab maintains 95% of the Southeast Asian industry for taxi-hailing and 71% in private car hailing. The company provides ride-sharing, private car, and services in Malaysia, Indonesia, Philippines, Thailand, Singapore, and Vietnam.