Southeast Asia’s Grab mops up $1 billion funding from financial firms

Grab, which started as a taxi-booking app, has been transforming itself into a consumer technology group. (Reuters)
Updated 02 August 2018
0

Southeast Asia’s Grab mops up $1 billion funding from financial firms

SINGAPORE: Southeast Asian ride-hailing company Grab on Thursday said it has secured new investment of $1 billion from a clutch of financial firms, including global asset manager OppenheimerFunds and China’s Ping An Capital.
The funding comes after Toyota Motor Corp. in June bought a $1 billion stake in Grab as the lead investor in a financing round launched following Grab’s acquisition of Uber Technologies Inc’s operations in Southeast Asia.
Grab said other investors in the new funding include Microsoft Corp. co-founder Paul Allen’s Vulcan Capital, Macquarie Capital and Lightspeed Venture Partners.
Six-year-old Grab, which counts Chinese ride-hailing firm Didi Chuxing and Japan’s SoftBank Group Corp. among its backers, was valued at just more than $10 billion after Toyota’s investment, a source familiar with the matter said at the time.
Grab, which started as a taxi-booking app, has been transforming itself into a consumer technology group, offering services such as digital payments and food delivery.
Earlier this year, Uber sold its Southeast Asian business to Grab in exchange for a stake in the Singapore-based firm, in a deal that has prompted regulatory scrutiny.
Grab said it would use the new funds to expand its online-to-offline services in Southeast Asia.
It plans to use a significant portion of the proceeds to invest in Indonesia, Southeast Asia’s biggest market where Go-Jek is the dominant player in ride-hailing.
Go-Jek counts Chinese tech giant Tencent Holdings Ltd., private equity firms KKR & Co., Warburg Pincus and venture capital player Sequoia Capital among its investors.


Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 30 min 59 sec ago
0

Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.