Grab raised more than $850 million from Japanese investors to fund an ongoing expansion into financial services across Southeast Asia.
Mitsubishi UFJ Financial Group (MUFG), the largest bank in Japan, will invest $706 million, while network systems and integration services provider TIS will inject $150 million.
In a statement, the Grab said the investment will “go towards creating accessible and affordable financial services for Southeast Asia to boost financial inclusion in the region”.
Grab president Ming Maa said it will work with the investors to co-develop financial products for the region.
Under the collaboration with MUFG, the companies aim to use insights from their customers to cater to the needs of Grab’s users, driver- and merchant-partners. It will work with TIS to improve digital payment infrastructure in the region and Japan to enable wider adoption of cashless payment options, such as GrabPay.
The latest funding round follows a push into financial services incuding consumer insurance and lending. In early 2019, Grab Financial Group submitted a joint application for a digital banking licence with Singtel, the largest mobile operator in Singapore: the Monetary Authority of Singapore plans to issue two digital banking and three wholesale licences by mid-2020.
In December 2019 Grab launched a physical payment card in its home market of Singapore to stand alongside a mobile wallet, with plans to extend availability across its entire Southeast Asia operation.Subscribe to our daily newsletter Back