Grab raising US$856 million from Japanese investors

February 25, 2020 14:51
Grab said it will use the funding to offer lending, insurance and wealth management products and services. Photo: Reuters

Southeast Asian ride hailer Grab is raising US$706 million from Mitsubishi UFJ Financial Group Inc. (MUFG) and US$150 million from Japanese IT services firm TIS Inc. as it seeks to expand aggressively into financial services, Reuters reports.

“MUFG’s investment into Grab is a vote of confidence in our super app strategy and our ability to build a long-term, sustainable business,” Grab president Ming Maa said in a statement on Tuesday.

Grab, backed by SoftBank Group Corp., said it will use the funding to offer lending, insurance and wealth management products and services for Southeast Asian consumers and small and medium-sized enterprises.

MUFG’s deputy president and incoming chief executive Hironori Kamezawa said the bank will combine Grab’s advanced technologies and data management expertise with its financial experience.

“We believe that this alliance will also generate additional momentum for our ongoing digital transformation of MUFG,” he said.

Separately, Grab also said that TIS Inc., part of TIS INTEC Group, is investing US$150 million in the company.

In Beijing, ride-hailing company Didi Chuxing said it plans to launch a food delivery service in Japan from April.

“DiDi begins recruiting food delivery partners in Osaka, Japan on Feb. 25 and plans to officially launch this service in the city in early April,” a company representative told Reuters.

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