Toyota invests $1b in SE Asia's Grab at $10b valuation

Grab has not indicated the expected size of the round. The company closed its Series G last year at $2.5 billion, reaching a reported valuation of $6 billion. This included $2 billion from existing backers SoftBank and Didi Chuxing as well as commitments of an undisclosed size from the likes of Hyundai and a division of Toyota.

The previous investment came from Toyota Tsusho through the Next Technology Fund. It coincided with the announcement of a partnership between Grab, Toyota Motor, Toyota Financial Services Corporation, and Aioi Nissay Dowa Insurance focused on data analytics to improve driver performance.

Grab and Toyota now plan to strengthen their collaboration. This includes using information from Grab’s fleet to analyze how drivers might benefit from connected car services on the Toyota mobility service platform – including user-based insurance, financing program, and predictive maintenance – and rolling out initiatives such as telematics-based insurance. Toyota will get a seat on Grab’s board and one of its team will be seconded to the company as an executive officer.

In addition, Grab will use the capital to expand its portfolio of online-to-offline services. The company’s app has been downloaded onto more than 100 million mobile devices and it has a network of 6.6 million drivers and agents covering 217 cities in eight Southeast Asian countries. This fleet provides over six million rides per day – offering private car, motorbike, taxi, and carpooling services – and makes food and package deliveries. The company also operates the GrabPay mobile payments platform.

“Grab is the first Southeast Asian technology startup to have achieved run rate revenues of over $1 billion across an installed mobile base of over 100 million users. Our rapid user and revenue growth is a testament to our ability to hyper-localize, efficiently execute and provide the highest efficiency platform in a region as diverse as Southeast Asia. We are honored to be supported by industry leaders including Toyota, Uber, Didi and SoftBank,” Ming Maa, president of Grab, said in a statement.

SoftBank and Didi have committed multiple investments in Grab between them, along with backers such as Tiger Global Management, China Investment Corporation, GGV Capital and Vertex Ventures. Honda and Hyundai have also backed the company as part of strategic arrangements similar to the one agreed with Toyota.

In March, Grab acquired the Southeast Asia operations of global rival Uber. In return for handing over control of its ridesharing and food delivery businesses in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, Uber got a 27.5% stake in Grab.

Grab also recently launched a venture capital unit aimed at developing and investing in emerging technology businesses across the region. The unit, known as Grab Ventures, will partner with private investment firms and government agencies to identify growth-stage companies with technology solutions in the transportation, logistics, food, and financial services spaces.

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• Topics
• Southeast Asia
• Expansion
• Technology
• Southeast Asia
• Grab
• Growth capital
• Transportation