Ride-hailer Grab‘s fintech unit, Grab Financial Group, has raised over US$300 million in a series A fundraising led by South Korea’s Hanwha Asset Management.
Other investors in the round include K3 Ventures, GGV Capital, Arbor Ventures, and Flourish Ventures.
Photo credit: Grab
Launched in 2018, the financial arm offers services including micro-investment, payment, insurance, and loans for merchants, consumers, and drivers.
The fresh capital will be used to continue helping more individuals and small- and medium-sized enterprises access financial services. It will also be invested in hiring talent and expanding its offerings in Southeast Asia, the firm said in a statement.
This investment marks the first time that Grab has raised money from outside investors for the unit. Following the fundraising, Grab still owns a majority stake in Grab Financial Group.
The move suggests that the financial arm may go public separately from its parent company, although Grab hasn’t publicly discussed its IPO plans, according to The Information.
Earlier this week, the ride-hailing giant claimed that its net revenues jumped by about 70% in 2020 compared to the year prior and that it achieved segment breakeven for its ride-hailing business.
See also: Gojek suffers $17m impairment loss over Pathao investment
However, it’s expected that Grab will remain unprofitable until 2023, partly because of its continued spending in financial services, noted the bond credit rating agency Moody’s.
This development comes after reports surfaced that Gojek was in advanced talks with Tokopedia for a possible merger.
Update (January 14, 10:13 am): This article has been updated to include details from Grab’s official announcement.
Edited by Collin Furtado and Jaclyn Teng
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