Grab, Southeast Asia’s most precious startup, has raised over $850 million from Japanese investors to fund its continued expansion into financial services in Southeast Asia.
The largest bank in Japan, Mitsubishi UFJ Financial Group (MUFG), will invest USD 706 million, and the supplier of network systems and integration services – TIS – USD 150 million.
“MUFG’s investment in Grab is a vote of confidence in our super app strategy and our ability to construct a long-term, sustainable business,” Ming Maa, Grab’s CEO, said in a press release on Tuesday, as reported by the web site Reuters.
Grab, backed by SoftBank Group Corp, said it might use the funds to supply lending, insurance and wealth management services and products to consumers and small and medium-sized enterprises in Southeast Asia.
Grab has expanded into financial services, constructing on its offerings of passenger transportation, food delivery and e-wallets because it seeks to develop into a one-stop shop for on-demand services in Southeast Asia.
Ties between technology startups and banks have gotten increasingly more common within the region, where the widespread use of smartphones provides greater access to customers traditionally neglected by the economic system, Bloomberg recorded.
Grab will jointly develop financial products and solutions with the 2 investors, CEO Ming Maa said in a press release. The investments reveal “their confidence in Grab’s super app strategy and our ability to construct a sustainable, long-term business,” he said.
According to Mobile world live, in early 2019, Grab Financial Group submitted a joint application for a digital banking license with Singtel, the biggest mobile operator in Singapore: The Monetary Authority of Singapore plans to issue two digital banking licenses and three wholesale licenses by mid-2020.
In December 2019, Grab launched a physical version bank card in its home market of Singapore, alongside its mobile wallet, with plans to expand availability across its Southeast Asian operations.
