SoftBank hitches a ride with GrabTaxi

In late October, Tiger Global led a Series C round that took the total raised in the last 12 months to $90 million. Now SoftBank Corp. has committed $250 million and become the largest investor in the business.

"We have not even finished spending the Series B capital, but we realize we are in a unique position," explains Cheryl Goh, group head of marketing at GrabTaxi. "A number of us have start-up experience and we know how difficult it can be to raise money, especially in Southeast Asia. When the right partner comes along with the right credentials and they add value to the business, it is hard to say no."

SoftBank came in on the back of a referral from Tiger Global. The Japanese investor has an eye-watering portfolio of Asian technology companies, including Alibaba Group in China and India-based Ola, another taxi-booking platform. "We are looking to collaborate with these brands," Goh adds. "They understand how to build companies and get scale. They have talented senior management who can help us."

GrabTaxi has grown very far very fast. It took the firm a year to expand from Kuala Lumpur to Manila following its 2012 launch. GrabTaxi is now the leading taxi booking mobile app in Singapore, Malaysia, the Philippines, Thailand, Vietnam and Indonesia, with a presence in 17 cities.

It has 500,000 active users, a network of 60,000 registered taxi drivers, and three bookings are made every second. Through the app, users can identify which available cars are nearest, find out information pertaining to their past reliability, and offer incentives for a speedy pick-up.

The company has branched out somewhat - GrabCar, an Uber-style limousine service has been launched in Singapore, while motorbike-based offering GrabBike is now available in Vietnam - but the primary focus remains a localized booking platform that interacts with existing local taxi fleets.

Part of the pile of capital GrabTaxi now has at its disposal will go towards hiring new talent and social initiatives aimed at improving the welfare of taxi drivers, while building loyalty and retention. Funds have also been earmarked for marketing and customer acquisition, an increasingly important area given Uber's ambitions to develop its presence in Southeast Asia.

"Our biggest periods of growth have come when we have realized we are not alone and we have to operate like a global company and compete with people at that level," says Goh. "It is interesting what Uber does - in some markets they have entered the taxi space and in others we have premium cars. The lines are blurring and that is what consumers want."

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• Topics
• Southeast Asia
• Venture
• Early-stage
• SoftBank Capital
• Venture