Southeast Asian ride-hailing firm Grab said on Wednesday that it has secured $1.5 billion in fresh financing from a fund managed by Japan’s SoftBank and will use a significant portion of it to expand in Indonesia. The fresh investment from the Vision Fund of Softbank Group brings the total financing secured by Singapore-headquartered Grab over the past year to more than $4.5 billion.
Grab has seen its business grow rapidly since it bought US-based rival Uber’s regional ride-hailing and food business in March last year. The company said it is expanding its financial services and food and parcel delivery businesses, as well as adding new offerings such as on-demand video, digital healthcare, insurance and hotel bookings.
Grab said a “significant portion” of the new investment will be used to grow its business in Indonesia, the home base of regional rival Go-Jek, which has recently launched in Singapore. The company said in a statement that, “Grab’s Indonesian business is expanding rapidly, with revenue more than doubling in 2018.”
During the last year, Grab has received investment from major companies including Toyota Motor, Hyundai Motor, Oppenheimer Funds and Microsoft Corporation, as well as the new investment from Softbank.
Its main competitor, Go-Jek has won financial backing from investors including Google, Singapore’s sovereign wealth fund Temasek and Chinese internet giant Tencent.
Southeast Asia’s ride-hailing market is expected to be worth $20 billion by 2025, according to research by Google and Temasek.