Grab confirmed today that it has received a US$200 million investment from Thai retail and property conglomerate Central Group.
Through this strategic partnership, Central Group will obtain a non-controlling stake in Grab’s Thailand unit. The investment is not part of Grab’s ongoing series H fundraise, which has so far seen the company secure close to US$3 billion from investors including Toyota, Microsoft, and SoftBank.
Photo credit: Grab
The duo will collaborate on food delivery, with Central Group restaurants and food-related brands being onboarded onto Grab’s GrabFood platform.
They’ll also team up for logistics and passenger transportation, with GrabExpress providing express courier services for Central Group businesses and Grab vehicles being made available to customers at the conglomerate’s malls, hotels, and commercial properties.
Rumors about a tie-up between Grab and Central Group began to circulate last September. At the time, Reuters reported that Grab could sell a stake in its Thailand business to the group and work more closely with JD Central, the Thai conglomerate’s US$500 million joint venture with Chinese ecommerce giant JD.
That could prove awkward, given that JD is an investor in Grab’s archrival Go-Jek. In Indonesia, Go-Jek and JD collaborate on ecommerce and “new retail,” and there has even been speculation that the ride-hailer might acquire its shareholder’s Indonesian business.
See: JD and Go-Jek deepen their relationship to conquer Indonesia
Go-Jek launched Get – a localized version of its motorbike-hailing and courier services – in Thailand last month. It is yet to be seen which other features from its Indonesian platform it could bring to Thailand. But the warming relationship between Grab and Central – given the latter’s connection to JD – could create hurdles for any potential rollout of its Go-Pay wallet there.
This week, JD Central unveiled Dolfin Wallet, a new mobile payments platform that it set up in partnership with Thai financial institutions Bangkok Bank and Kasikornbank.
Last November, Kasikornbank invested US$50 million in Grab as part of a wider strategic partnership to bring the Singapore-based company’s GrabPay wallet to the kingdom.
When asked by Tech in Asia about any possible relationship with JD Central, a Grab spokesperson said the company “[doesn’t] comment on market rumors and speculation.”
A Go-Jek spokesperson told Tech in Asia the company “does not comment on competitors.”
Editing by Eileen C. Ang
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