Ride-hailing app Grab launches $100m Indonesia VC fund
Southeast Asian ride-hailing app operator Grab has created a $100 million fund to invest in Indonesian start-ups as part of its expansion plan in the country.
The ‘Grab 4 Indonesia’ social impact investment fund will invest in local start-ups involved in the mobile and financial services industries, particularly those serving smaller cities and communities that have yet to benefit from the digital economy. Grab will help start-ups accelerate their products to market via capital investment and technical assistance, according to a statement.
The fund is part of an overall initiative that will see Grab putting $700 million in investment to work in Indonesia over the next four years via a range of activities. These include the establishment of an R&D center in Jakarta to develop Grab’s localized technology solutions, and the expansion of mobile payments and micro-lending services through partnerships with Indonesia’s Lippo Group and Nobu Bank. Under such initiatives, Grab hopes its services will eventually expand across more cities than any of its competitors, including Jakarta, Bali, Bandung, Padang, Makassar, Medan, Surabaya and Yogyakarta.
“The ‘Grab 4 Indonesia’ 2020 master plan underlines our deep commitment to driving Southeast Asia forward and our excitement about the tremendous opportunities we see in Indonesia to help build and advance the country’s digital infrastructure and ecosystem,” said Anthony Tan (pictured), Grab’s co-founder and CEO.
The company began in 2012 as taxi-hailing app GrabTaxi, later expanding its business to include private car, motorbike and carpooling services. It is also testing new services such as last mile and food delivery. Grab has more than 630,000 drivers and 33 million user downloads across six countries in Southeast Asia. Indonesia is its largest market in the region, with the GrabCar and GrabBike businesses each growing more than 600% last year.
In December, car maker Honda joined Grab's roster of investors. The company's most significant backer is SoftBank, which led a $750 million round of funding for the company in September alongside new and existing backers. The round followed a $250 million investment by SoftBank in 2014. Other investors include Tiger Global Management, GGV Capital and Vertex Venture.
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