The Singapore-based ride-hailing service is getting $2 billion worth of investment from China-based ride-hail player Didi Chuxing and Softbank.
The startup also expects to raise an additional $500 million from other investors as part of this round. Provided it closes the additional sum, the company’s valuation would top $6 billion, according to a source familiar with Grab’s fundraising.
The $2.5 billion round is reportedly the largest ever single financing round in Southeast Asia and demonstrates just how ferociously the powers that be are battling for ride-hailing dominance in that part of the world.
The Singapore-headquartered company says it has a Southeast Asia market share of 95 percent in third-party taxi-hailing and 71 percent in private vehicle hailing.
It also provides carpooling services, private cars, motorcycles across 65 cities in 7 countries in that region, providing more than 3 million rides per day.
Grab isn’t the only ride-hail company Didi has put its money in. In addition to separate investments in India’s Ola and Lyft, Didi also recently led a $100 million round in Brazil ride-hail player 99 — formerly known as 99Taxis.
Uber’s rival Grab will use this funding to achieve the yet to occupy market in ridesharing and also build GrabPay as a payment solution in Southeast Asia.
Grab bought Indonesian payment service Kudo earlier this year, and has said it is seeking more acquisitions to support rapid growth.
This fundraising comes after Uber’s questionable workplace culture, federal inquiries of its softwares to help drivers avoid police and resignation of its CEO Travis Kalanick.