Grab, Uber’s Rival, to Raise $2.5 Billion in Fresh Funds

It appears like Grab, Uber’s Asian rival in what concerns ride-hailing, will be reportedly raising about $2.5 billion in fresh investments. A few big companies will be contributing to this raise. Among them will be Didi Chuxing from China and Softbank Group from Japan. The main purpose of this action is probably to offer the company a boost in that area and to help grow its business. According to an official statement from Grab which is issued on Monday, those big companies are the ones which will invest up to $2 billion. Didi Chuxing is actually the ride-hailing company that has managed to beat Uber’s popularity in China.

Grab is on some big horses

It’s interesting that apart from the $2 billion, Grab is also expecting an additional sum of $500 million. This will make the total of fresh funds approximately $2.5 billion. Also, according to Grab’s statement, this is supposedly the biggest such investment in the region of Southeastern Asia. As for its valuation, even if the company was silent, sources are claiming that it will be at over $6 billion after those big investments. Anthony Tan, Grab’s CEO and co-founder, is also very happy that those huge companies were willing to make those investments for a common purpose. To help grow the transportation business in the region.

The company also reportedly wants to become the main ride-hailing company in the area, and to become the market leader. Also, the plan on the long term is to develop GrabPay, a method of payment for Southeastern Asia. The customers will use it to pay for their rides, therefore developing two businesses at once. If it works out, this will be a win-win situation. Both for the companies that are investing and for the company. Also, for its payment method.

Developing ride-hailing

According to official numbers, Grab is currently holding 95% of all market share in the area in what concerns taxi rides. Also, it has 71% when it comes to private vehicles. It’s worth mentioning that the company offers private vehicle services and uses cars, motorbikes, taxis and even carpooling. Its business is extended over a large number of cities in countries like Singapore, Malaysia, Thailand and Indonesia. The timing of this investment is also interesting. It comes right while Uber is facing some serious problems. The company might even fall from the throne it stood on until now.

Image source: vulcanpost

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