JAKARTA (TheInsiderStories) – The Singapore-based ride hailing firm Grab Holdings Inc. announced would invest US$250 million in Indonesian startup through its Grab Ventures arm, said its chief executive in a written statement on Wednesday (29/08).
The Southeast Asia’s O2O (online-to-offline) mobile platform, aims to help select Indonesian startups scale up nationally and across Southeast Asia, by providing a unique blend of Southeast Asian market access, mentorship, technology capabilities and strategic investments.
Grab Ventures is the latest initiative of the ‘Grab 4 Indonesia’ 2020 Master Plan to support Indonesia’s goal to be Southeast Asia’s largest digital economy by 2020.
Grab Ventures also announced Grab Ventures Velocity, a programme to specifically support startups in scaling stage. The programme is in association with the Ministry of Communication and Information Technology (CIT), Creative Economy Agency, and partners include Amazon Web Services and MDI Ventures, PT Telekomunikasi Indonesia Tbk’s corporate venture capital initiative.
Rudiantara, Minister of CIT, said, “Indonesia has been the home of some notable tech unicorns, and we believe more regional or global tech leaders can emerge from Indonesia. We are pioneering IDEA Hub, a digital economy platform to accelerate economic access to G20 countries, another initiative to provide learning materials and best practices for Indonesia’s digital companies.”
Meanwhile, Triawan Munaf, Head of Creative Economy Agency stated, “Our agency is committed to be the bridge between startups, investors, mentors and learning materials, and excited to have Grab on board with their full suite of expertise and network.”
Ridzki Kramadibrata, Managing Director, Grab Indonesia said, “Since last year, we’ve created hundreds of tech jobs and empowered more than 5 million micro-entrepreneurs. We now want to help other startups dream bigger and become not just Indonesia’s next unicorn but also one of Southeast Asia’s tech leaders.
He added, the launch of Grab Ventures in Indonesia follows its regional launch in June in Singapore. It aims to discover and grow Southeast Asia’s next generation of technology leaders and promote innovation and digitisation.
On August 2, Grab has raised $2 billion for its current round of financing. First announced in February 2017, Grab committed Rp10 trillion ($689.66 million) to the ‘Grab 4 Indonesia’ 2020 Master Plan to provide all Indonesians an opportunity to move into the digital economy.
Grab Ventures is the latest ‘Grab 4 Indonesia’ initiative to support the growth of the tech startup ecosystem in the country. This is another milestone in a year in which Grab has built out its lead in Indonesia, its largest market.
Grab provides online-to-offline services to more Indonesians, having expanded from 12 cities in January 2017 to 137 cities today, covering Sabang to Merauke.
Grab is Indonesia’s most preferred ride-hailing company with 65 percent market share. Grab’s singular focus on providing safer and more affordable on-demand transport services has served as the foundation of its everyday app strategy.
Grab started expanding its GrabFood (food delivery) and GrabExpress (parcel delivery) services in the beginning of 2018, and consumers have embraced Grab’s newer services. GrabFood expanded to over 20 new cities this year and is now in 30 cities. Gross Merchandise Value (GMV) in Indonesia almost quadrupled in the first half of 2018, and GrabFood is expected to be the chosen food delivery service in Indonesia by the end of 2018. GrabExpress GMV in Indonesia also almost tripled in the first half of 2018.
Last June, Toyota Motor Corporation has announced to invested as much as $1 billion in the ride-hailing provider. 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.
Based on the company statement, Grab stated, Toyota has been joined by a slate of leading global financial institutions, including Macquarie Capital, Oppenheimer Funds, Ping An Capital, Mirae Asset – Naver Asia Growth Fund, Cinda Sino-Rock Investment Management Company, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners, and other investors, underscoring Grab’s aim to be the leading technology player in the region.
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.
The oprator 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.”
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.