INSUBCONTINENT EXCLUSIVE:
Grab, the Singapore startup that bought Uber Southeast Asia business earlier this year, continues to announce strategic investors for its
ongoing Series H funding round
The latest edition revealed today is Korean automotive firm Hyundai, which is investing $250 million.
Hyundai first invested in Grab in
January, and it joins recently announced investors Microsoft (undisclosed) and Booking Holdings ($200 million) in the round, which is aimed
at reaching at least$3 billion before the end of this year
Grab first announced a $1 billion investment from Toyota in Juneand that was doubled to $2 billion when a range of institutional backers
Those includeOppenheimerFunds, Ping An Capital, Mirae Asset-Naver Asia Growth Fund, Lightspeed Venture Partners and Macquarie Capital, and
today Grab disclosed two others:Goldman Sachs Investment Partners and Citi Ventures.
In total, these additions take thatSeries H round to
$2.7 billion so far, Grab said
That means that Grab, which is valued at over $11 billion, has now raised more than $6 billion from investors including SoftBank and China
That a figure that extends its record for a startup in Southeast Asia
Grab claims 125 million downloads across its eight markets in Southeast Asia and over 2.5 billion rides completed to date, up from two
billion in July.
Like Toyota, Microsoft and travel giant Booking — which was formerly known as Priceline — Hyundai involvement includes
a fairly hefty strategic portion: electric vehicles.
Grab said that it will work with the Korea firm introduce a series of EV pilots in
Southeast Asia that&ll feature Hyundai and Hyundai-owned Kia vehicles
The companies began working on therollout of Hyundai&sIONIQ vehicle in Singapore earlier this year and now they will add Kia EVs and explore
opportunities beyond Singapore.
(Right to left) Euisun Chung, Executive Vice Chairman of Hyundai Motor Group, and Anthony Tan, Grab CEO,
mark the new $250 million investment deal [Image via Bloomberg New Economy Forum]Grab has an EV fleet in Singapore — size undisclosed —
and it is working with Singapore Power to roll out a network of charging hubs and packages for Grab EV drivers as it expands that EV
But this Hyundai partnership would represent its first EV foray into other markets in Southeast Asia, which has a cumulative population of
more than 600 million consumers, although it didn&t name which markets or give a timeframe.
As in Singapore, Grab said its EV strategy will
include engaging governments and &infrastructure players& to set up the right conditions for EVs, such as charging networks, maintenance
packages for drivers and general research into how EVs perform in more humid environments.
Beyond the EV plans, Grab Series H is being put
aside for a number of ventures which include its push to become an all-in-one ‘super app& that goes beyond transportation to cover food
deliveries, services on-demand, payments and fintech services, and more
There also likely an allocation for competition because, although Grab consumed Uber local business in the region, Indonesia-based rival
Go-Jek is expanding in the region.
Go-Jek, which is aiming to raise $2 billion in its latest funding round according to sources, has entered
Vietnam, is in the process of launching in Thailand and has just begun recruiting drivers for a Singapore rollout
That means Grab needs to keep a substantial amount of powder dry in case of the (likely) event that its battle with Go-Jek descends into a
discount war, as was often the case during its rivalry with Uber.
That explains why it is raising an enormous $3 billion round despite
having already removed Uber from the region via the buyout deal, which saw the U.S
ride-hailing giant take a 27.5 percent stake in Grab.
That deal, by the way, didn&t really go as planned
Not only was Grab over ambitious on the logistics, including plans to consume most of Uber 500 staff, but it misread the public reaction and
incurred the wrath of regulators
Singapore consumer watchdog hit Uber and Grab with a total of $9.5 million in finesfor the &anti-competitive& merger, while the pair gota
lighter reprimand in the Philippines.
Southeast Asia Grab partners with MasterCard to offer prepaid cards
