Ride hailing company Grab just secured nearly $1 billion to help achieve its super app ambitions.
The Singapore start up is getting an $850 million cash boost from investors that it plans to pump into digital payments and financial services. The injection comes as Grab is battling for market share against Indonesia’s GoJek.
Japan’s largest bank, Mitsubishi UFJ Financial Group (MBFJF), put up more than $700 million, with the rest coming from TIS, a Japanese IT solutions company.
Grab president Ming Maa said in a statement that the company will work with Mitsubishi and TIS to co-develop financial products.
“Ensuring greater access to affordable and accessible financial services and products is key to growing financial inclusion in Southeast Asia,” Maa said.
Since driving Uber (UBER) out of Southeast Asia in 2018, Grab has stepped up the competition with regional rivals like GoJek, which is headquartered in Jakarta. GoJek launched on Grab’s home turf of Singapore in 2018.
Both companies have expanded beyond ride-hailing, and are trying to create irreplaceable “super apps” that offer customers everything from food delivery to financial services.
Last year, Grab rolled out financial services like consumer insurance and loans to its users.
Grab dominates the ride-hailing industry in the eight countries in the region where it operates. But GoJek dominates in its home country of Indonesia.
Grab was last valued at more than $14 billion and GoJek is worth about $10 billion, according to CB Insights.