Super app Grab has secured a pair of investments totaling $856 million, fueling the so-called decacorn’s latest amplification into financial services and digital payments.
Mitsubishi UFJ Financial Group (MUFG) is investing $706 million and entering a new business alliance with Grab to “co-develop next-generation bespoke financial services in Southeast Asia.”
Says Hironori Kamezawa, deputy president, COO and CDTO for MUFG: “We are excited to be able to provide customers with next-generation financial services by combining Grab's advanced technologies and data management expertise with our financial knowledge and know-how.”
As part of the deal, Grab will bestow MUFG with “First Choice Bank” status, which allows MUFG to be the default option for financial services on the platform.
“Together with MUFG, we look forward to playing a key role in driving financial inclusion in Southeast Asia and offering greater and affordable access to financial products and services to millions of customers across the region,” says Ming Maa, president of Grab.
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Funding from MUFG will be used to create lending, insurance and wealth management solutions for Grab’s users, driver-partners and merchant-partners.
Reuben Lai, senior managing director for Grab Financial Group, says the new partnership “allows us to jointly create innovative financial services such as payments and micro-financing to meet the needs of underbanked customer segments in Southeast Asia.”
Digital payments
A separate $150 million investment is being led by TIS INTEC Group to co-develop payment technologies, such as cashless payment solution GrabPay.
Maa says that digital payments are becoming more popular in the region, particularly among the “largely mobile yet underbanked population.”
“We need to create better experiences to pay for daily transactions and are excited to have TIS as a strategic technology partner to further develop a secure digital payment infrastructure in the region,” says Maa.
Since its launch in 2012, Grab has been downloaded on more than 185 million mobile devices.
The company has evolved from a ride-sharing provider to a super app with numerous offerings such as transportation, food and financial services across eight countries in Southeast Asia.