Grab Financial Group said that more than $ 300 million has been raised in Series A funding led by South Korean firm Hanhwa Asset Management with participation from today’s 3 Ventures, GGV Capital, Arbor Ventures and Flourish Ventures.
The Financial Times reports that Grab Financial, a $ 3 billion funding value, is a subsidiary of Ride-Healing and delivery giant Grab. Both K3 Ventures and GGV Capital were early investors in Grab, which was founded in 2012.
In February 2020, Grab announced that it had raised $ 856 million in funds to increase its payments and financial services. The news came amid speculation that Grab and Gojek, who were among the top rivals, were finally approaching a merger after lengthy discussions.
But the Grab-GoJek talks have stalled, and Gojek is now reportedly in talks to merge with Indonesia e-commerce platform Tokopidia. According to Bloomberg, the combined company would be worth $ 18 billion, making it more stringent for Grab.
In the funding announcement, Grab Financial Group stated that its total income increased more than 40% in 2020 compared to 2019. It is driven by strong consumer adoption of a consumer platform, an investment platform that allows users to invest small amounts at a time. Through the Grab app and insurance products. Grab Financial announced in August 2020 the launch of several financial products for consumers and SMEs.
The use of digital financial services by consumers and SMEs in Southeast Asia increased during the COVID-19 epidemic. According to a report published in November by Google, Temasek and Bain & Co., banking app and online payment, remittances, insurance products and robo-advisor investment platforms all grew in 2020, and the region’s financial services market was worth nearly 60 billion. Can reach. In revenue by 2025.
A consortium between Grab-Singtel was also among several companies that were granted a full digital-banking license by the Monetary Authority of Singapore in December 2020.
In a press statement, Hanhwa Asset Management CEO Yong Hyun Kim said, “We expect GNG to continue its continued growth on the back of an innovative business model that supports consumers’ changing broad lifestyles, as well As well as its highly correlated relationship. Hold on, the largest Southeast Asian unicorn. “