Southeast Asian ride-hailing firm Grab said on Wednesday it has secured $1.5 billion in fresh financing from a fund run by Japan's SoftBank and will use a significant portion of it to expand in Indonesia.
Grab has seen its business grow rapidly since it bought US-based rival Uber's regional ride-hailing and food business in March last year. Uber received a 27.5 percent stake in Grab in return.
The fresh investment from the Vision Fund of Softbank Group brings the total financing secured by Singapore-headquartered Grab over the past year to more than $4.5 billion.
The company said it is expanding its financial services and food and parcel delivery businesses, as well as adding new offerings such as on-demand video, digital healthcare, insurance and hotel bookings.
Grab said a "significant portion" of the new investment will be used to grow its business in Indonesia, the home base of regional rival Go-Jek, which has recently launched in Singapore.
"Grab's Indonesian business is expanding rapidly, with revenue more than doubling in 2018," the company said in a statement.
Toyota Motor, Hyundai Motor, Oppenheimer Funds and Microsoft Corp are among the major investors in Grab over the past year. Softbank is owned by Japan's richest man Masayoshi Son.
Go-Jek has won financial backing from investors including Google, Singapore's sovereign wealth fund Temasek and Chinese internet giant Tencent.
Southeast Asia's ride-hailing market is expected to be worth $20 billion by 2025, according to research by Google and Temasek.
Saudi Arabia’s state-owned Public Investment Fund and Abu Dhabi’s Mubadala Investment Co are among investors that have committed capital to the $100 billion Vision Fund.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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