SoftBank close to pumping another US$500m into Grab

Singapore

SOFTBANK Group is reported to be nearing a deal to invest about US$500 million in Grab - a move that will deepen the Japanese conglomerate's commitment in the most valuable ride-hailing firm in South-east Asia.

SoftBank's investment will be part of the US$1 billion that Grab is seeking in its latest funding, said a Reuters report on Friday.

This comes after Go-Jek - tipped to be Grab's largest rival in the region after Uber's exit in March - is said to be entering Singapore as early as this month.

The Jakarta-based ride-hailing platform has also been reported to be seeking to raise an additional US$2 billion in a round that will value it at US$8-10 billion.

Go-Jek is currently valued at about US$5 billion. It has raised more than US$2.1 billion in funding to-date and its backers include Temasek Holdings, Tencent and Singapore venture capital firm Openspace Ventures.

Grab has a current valuation of some US$11 billion. It has raised over US$6 billion in total funding and its major backers include SoftBank, Chinese ride-hailing firm Didi Chuxing and Toyota Motor.

SoftBank first bought a stake worth US$250 million in Grab in 2014, as part of the startup's Series D funding round. This was just as Grab - then two years old - began competing with Uber in South-east Asia.

In March this year, Grab acquired Uber's South-east Asian business for a 25-per cent stake in itself and has since expanded its regional operations, including ride-hailing, food delivery and e-payments.

In August, Grab announced it had snagged US$2 billion in Series H funding led by Toyota. Later that month, Grab said it is on track to raise an additional US$1 billion by end-2018.

Grab president Ming Maa, speaking at the 2018 Asia PE-VC Summit held last month, said: "We closed US$2 billion in our previous financing. We have commitments of another US$500 million and we expect to close a little over US$3 billion by the end of December."