Grab’s on track to raise another US$6.5 billion this year – and its newest backer called it a super app that’s ‘second to none’

Grab said that it would use the new funding for regional expansion.
The Straits Times

Southeast Asia’s first decacorn, Grab, has now more funding than ever, having just secured a cool US$300 million (S$406 million) from US investment management firm Invesco Ltd.

This puts it on track to hit its goal of US$6.5 billion (S$8.8 billion) in funding by the end of 2019, following a US$1.46 billion injection from the SoftBank Vision Fund earlier this year, the ride-hailing giant announced in a statement on Thursday (June 27).

The startup has raised over US$9 billion since launching almost seven years ago, The Straits Times reported.

It hit decacorn status last year, making it one of under 20 privately-held companies in the world to do so, according to a report by Google and Temasek.

Google and Temasek are investors in Go-Jek.

Grab was the only startup out of Southeast Asia’s nine internet unicorns (including Go-Jek) to reach a US$10 billion valuation in 2018, the report added.

The report added that Grab scored the “lion’s share” of the investments in Southeast Asia’s internet economy over the past four years.

Read also: Grab, SEA’s first ‘decacorn’, has mopped up 25% of investments in the region’s internet economy since 2015: Google-Temasek report

This is Invesco’s second time investing in Grab, following a US$403 million contribution from Invesco-acquired asset manager OppenheimerFunds in July last year.

Invesco’s senior portfolio manager, Justin Leverenz, said the firm wanted to increase its stake in Grab, which it considered “a super app… second to none in the region.”

The only other major super app in Southeast Asia is Go-Jek.

Read also: Grab, Go-Jek wage street fight for SE Asia ‘super-app’ supremacy

Grab said that it would use the new funding for regional expansion. Its president, Ming Maa, said that the startup was currently “laser focused” on expanding its financial and mobility-enabled services.

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