JAKARTA (TheInsiderStories) – Grab Financial Group has raised over than US$300 million in Series A funding round led by Japan’ Hanwha Asset Management together with K3 Ventures, GGV Capital, Arbor Ventures, and Flourish Ventures, the company announced today. The new financing marked the next step of the company growth as its total revenues increased by over 40 percent in 2020 from the previous year.
The management said, these included the strong consumer adoption of its new services. As an example, its insurance distribution grew quadrupling its monthly active users to over 4.5 million in three months and distributing over 70 million insurance policies to date since launching last April. Adding to this momentum, the Grab – Singtel consortium was recently selected by the Monetary Authority of Singapore to set up a full digital bank.
Grab conveyed, the latest investment underscores financial technology (FinTech) and its ability to continue building a sustainable, diversified business to tap into the vast financial services market opportunity in Southeast Asia, which is expected to have a full revenue potential of US$60 billion by 2025.
The financial group, which today offers payments and financial services across lending, insurance and retail wealth management in the region, will use the new funds to continue helping more individuals also smal and medium access the benefits of financial services.
Reuben Lai, senior managing director of Grab Financial Group, said, “We are at an inflection point in Southeast Asia, as the pandemic has accelerated the need for digital financial services that help us grow and protect our incomes.”
While, Yong Hyun Kim, CEO of Hanwha, commented, “We are very excited to be leading the Series A round for (Grab) as part of Hanwha’ expertise and interest in the FinTech space and our ongoing investment into the sector.”
In a region where over 70 percent of the adult population is still underbanked, and millions of small and medium enterprises still need crucial funding, the unit of Grab Holdings, aims to help bridge these unmet needs and close the financial inclusion gap.
Recently, various media reported, the Southeast Asia’ largest online transportation apps, PT Aplikasi Bangsa (GoJek) and Grab, in merger talks. The companies with valued $14 billion and $9 billion deal would be the latest step in consolidation to stem losses caused by costly fight and to broader the businesses.
The talks between Japanese SoftBank-backed and Chinese Tencent-backed GoJek are reportedly is still in the initial stages. As known, the providers have a large market in Southeast Asia, especially in Indonesia. Both not only compete in terms of transportation services, but also in the payment and food-delivery system.
GoJek and Grab, which were founded in 2010 and 2012 respectively, wants to be the super apps of choice in Southeast Asia’ largest economy. Both companies are announcing new partnerships and acquisitions almost every week.
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