Singapore (TheInsiderStories) ― Japan’s Toyota Motor Corp., lead a new financing round worth of US$1 billion in Grab Holdings Inc., the Southeast Asia’s leading O2O mobile platform announced today. The transaction is subject to the satisfaction of certain closing conditions.
As part of the agreement, Toyota and Grab will strengthen and expand their existing collaboration in the area of connected cars, to drive the adoption of new mobility solutions across Southeast Asia.
This investment by Toyota is the largest-ever by an automotive manufacturer in the global ride-hailing sector, and brings Grab closer to achieving its vision of becoming a one-stop mobility platform in Southeast Asia.
Grab plans to work with partners to create a more efficient transport network that will ease traffic congestion in Southeast Asia’s mega-cities, make mobility accessible for all and provide driver-partners with increased income opportunities for them to move up the economic ladder.
It said, this investment allows Grab to further expand its range of O2O services, such as GrabFood and GrabPay, deeper into the region. Grab operates in 217 cities across eight Southeast Asian countries and offers users safe and affordable transport, food and package delivery, mobile payments and financial services through its Grab mobile app.
Ming Maa, President of Grab, said: “Grab is the first Southeast Asian technology startup to have achieved run rate revenues of over $1 billion across an installed mobile base of over 100 million users.”
“Our rapid user and revenue growth is a testament to our ability to hyper-localize, efficiently execute and provide the highest efficiency platform in a region as diverse as Southeast Asia. We are honored to be supported by industry leaders including Toyota, Uber, Didi and SoftBank,” said him.
Shigeki Tomoyama, Toyota Executive Vice President and President of Toyota’s in-house Connected Car Company, added: “Together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia.”
To deepen the strategic collaboration, one Toyota executive will be appointed to Grab’s board of directors and a dedicated Toyota team member will be seconded to Grab as an executive officer.
As today, the Grab app has been downloaded into over 100 million mobile devices, giving passengers access to over 6.6 million drivers and agents, and the region’s largest land transportation fleet delivering over 6 million rides per day.
Grab offers the widest range of on-demand transport services in the region, in addition to food and package delivery services. Grab’s food delivery service, GrabFood, is the only food delivery company operating across Malaysia, Singapore, Vietnam, Indonesia, Philippines and Thailand.
Grab Financial increases access to cashless services for millions of Grab customers across Southeast Asia, and connects the underserved and unbanked population to financial services.
The ride-hailing has announced on April 6 that it had acquired the South-east Asia business of its rival Uber, including in Indonesia country with the largest middle class population.
Ridzki Kramadibrata Managing Director of Grab Indonesia reveals since March 26, the company has received 75 percent sign up applications of Uber’s driver after the integration with the San Francisco based company. Currently, there are 2.7 million Grab drivers around South-east Asia.
As part of Grab 4 Indonesia’s master plan to create millions of income opportunities through the digital economy, Grab announced a further expansion plan not only for its main line of business in transportation, but also GrabFood, GrabExpress, GrabPay and GrabFinancial introductions in Indonesia.
The company has won support for its GrabPay service from third-party merchants in Indonesia last year, from biggest Indonesian conglomerate Lippo Group to enter the payments space Ovo.id, an e-money transfer company aimed to ramp up their position in the market.
As a further step to build its fintech platform, Grab has teamed up with Japan’s Credit Saison to create a joint venture called Grab Financial Services Asia, extending its service offerings to micro-loans and insurance options for Grab drivers and businesses that use its GrabPay services.