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Grab raises US$850 mil to expand into financial services

Bloomberg Published on Tue, Feb 25, 2020 / 4:05 PM GMT+8

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SINGAPORE (Feb 25): Grab, Southeast Asia’s most valuable startup, raised more than US$850 million ($1.2 billion) from Japan’s Mitsubishi UFJ Financial Group Inc and TIS Inc to bankroll its expansion into financial services in the region.

The sum includes US$706 million from MUFG, Japan’s largest bank, and US$150 million from TIS, a provider of data center and cloud services, according to joint statements from the companies.

Backed by SoftBank Group Corp, Grab has been expanding into financial services, building on its ride-hailing, food delivery and e-wallet offerings in an effort to become a one-stop shop for on-demand services in Southeast Asia. Tie-ups between tech startups and banks are becoming more common in the region, where widespread smartphone use promises greater access to clients who have traditionally been neglected by the financial system.