Grab To Raise A Further $2 Billion Before Year End
This would take their funding total to a whopping $6.5 billion.
It seems that the ride hailing and courier world is an expensive one, if Grab's latest announcement on funding rounds is anything to go by. In a recent press release, Grab Holdings Inc. co-founder, Anthony Tan claimed that Masayoshi Son’s SoftBank Vision Fund had given his recent funding vision the full go-ahead.
In that same press release, they announced that they were looking to expand their current funding round to a whopping $6.5 billion, overtaking the $4.5 billion raised in the series H round of funding and with a top up from Masayoshi Son’s SoftBank Vision Fund of $1.46 billion.
While no-one is disputing that a company has to spend money to make money, and given Grab's recent spate of takeovers, funding on this level is almost unheard of. It's an interesting move for Grab and more importantly, interesting timing. You see, it comes hot on the heels of two separate quotes from Grab high level executives claiming that Grab is four times bigger than the nearest competitor and has 62 percent of Indonesia's ride-hailing market. Well that all sounds good doesn't it? Well, it might not quite be what it seems with the recent release of CB Insight's decacorn list where Grab's valuation of $11 billion was just $1 billion behind the new kid in town, Go Jek.
So, wether this new round of funding is to improve services or simply scare off Go Jek, who as we speak, are nipping at Grab's heels, remains to be seen but one thing is for sure, this looks to be an interesting game of tag.