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Grab to invest US$700m in Indonesia
[JAKARTA] South-east Asian ride-hailing firm Grab on Thursday said it will invest US$700 million to expand in Indonesia over the next four years, marking its biggest-ever investment in any country.
Grab's push in what has become its largest market is set to intensify the competition among ride-hailing firms in Indonesia. Grab's rivals in the country include US firm Uber Technologies Inc and home-grown app Go-Jek.
Grab will open a research and development (R&D) centre, start a new investment fund and develop its payment platform in Indonesia. It had also hired Indonesia's former national police chief to oversee corporate governance.
Grab said its R&D centre in Jakarta will develop localised solutions such as algorithms to address the road regulations in the Indonesian capital. It will also invest up to US$100 million in early-stage start-ups or aspiring "technopreneurs".
Grab, which was co-founded by Harvard Business School graduate Anthony Tan, raised US$750 million in a funding round last September, more than a month after its Indonesian rival, Go-Jek, received US$550 million from investors including KKR and Warburg Pincus.