Grab looks to raise up to $500m for fintech arm, sources say

The insurance firms are likely to pour half of Grab’s target amount over a few rounds, one source said.

The Singapore-based startup is looking to reach agreements as early as October, the sources added. Grab Financial’s pre-money valuation currently sits at around US$2 billion, according to their estimate.

Tech in Asia has reached out to Grab, but the company declined to comment.

If a deal materializes, it would come as Grab Financial gears up for major expansion.

The fintech arm recently launched its first micro-investment solution. Called AutoInvest, it allows Singapore users to invest as low as S$1 per every transaction made with Grab services. The company said users can expect to earn about 1.8% in returns per year with the feature.

Grab also announced other products such as consumer loans and the expansion of its buy-now-pay-later service.