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Grab is shutting down its GrabInvest services in Singapore, citing the business not being “commercially viable.”
The Singapore super app will “no longer be investing to scale GrabInvest,” a spokesperson told Tech in Asia.
“This decision is part of our ongoing efforts to streamline our financial services business to focus on products with strong ecosystem synergies such as GrabPay, Insurance, and Lending,” the person added.
In a letter to consumers, GrabInvest said it will not accept new deposits into AutoInvest and Earn+ from September 25, and asked users to take out their money from both products by October 13.
Released in 2020, AutoInvest allowed users to invest a small amount of money automatically each time they use Grab’s services. Earn+, which was launched in May 2022, let users put money into their GrabPay Wallet and earn interest of up to 2.5% per year.
Both are part of GrabFin, which covers all of Grab’s financial services outside digital banks. These services were only available in Singapore.
If users do not take out their money by the deadline, their holdings will be automatically sold at the current market price and the money will be returned to their GrabPay Wallet, according to the email.
In August, Grab logged US$567 million in revenue for the second quarter of 2023, marking a 77% growth over the same period last year. Its losses also improved by 74% to US$148 million.
The company wants to hit EBITDA positive in Q3 this year.
See also: How this ride-hailing firm holds its ground against Grab, Gojek in Indonesia
Update (September 26, 12:00 pm): This article was updated to include details from a Grab statement.
Editing by Thu Huong Le and Eileen C. Ang
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