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Ride-hailing service Grab eyes another $2billion this year to fund its expansion plans

It seems that Grab is going to leave no stone unturned in its endeavour to become the leading name in the ride-hailing services arena in Southeast Asia. It’s trying its best to move ahead of its competitor and rival Go-Jek which recently raised $1 billion in an ongoing Series F round, according to a report by TechCrunch.

Grab which raised $1.5 billion from Softbank’s Vision Fund in multi-billion Series H deal is planning to extend the round to $6.5 billion to intensify its battle with Go-Jek.

According to a spokesperson for Grab, the $6.5 billion will include additional money into the Series H deal, and it may include debt funding. The money announced so far this year—$4.5 billion from the Series H—is included in the $6.5 billion goal, which means that the company is aiming to raise a further $2 billion in 2019.

At the time of press, Grab’s valuation is $14 billion and the company has already raised $7.5 billion to date.

While it is expected that the money will be used for growth, the company not only wants to carve a niche for itself in the car-hailing services arena but it wants to develop its ‘Super App’ strategy in the Southeast Asian region. In order to compete with Go-Jek the company is also planning to make six acquisitions this year.

This approach by both the companies is somewhat new to the Southeast Asian region which despite of its growth potential has never seen something of this sort. Things have started to change and with the rise of the local companies like Grab and Go-Jek and their rapid expansion spree has changed the whole dynamics of the area. These local companies are buying up smaller startups to add expertise under the aforementioned ‘Super App’ strategy, which is aimed at expanding to become the ‘on-demand’ app of choice for Southeast Asia’s 600 million consumers.

Source: TechCrunch   

Image: Shutterstock

Ride-hailing service Grab eyes another $2billion this year to fund its expansion plans
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