Hyundai and Kia are the latest investors in Grab’s $3b funding round

A Grab-branded electric Hyundai Ioniq car / Photo credit: Grab

Hyundai Motor and affiliate Kia Motors – South Korea’s top automotive manufacturers – are investing US$250 million in Grab as part of a strategic deal that aims to fuel electric vehicle (EV) adoption in Southeast Asia.

It’s the latest in a string of investments that are expected to total US$3 billion for the ride-hailing firm this year.

Apart from the Hyundai group, the investors that have so far plowed US$2.7 billion in Grab’s series H round include Japan’s Toyota, US tech giant Microsoft and travel firm Booking, as well as global financial institutions like OppenheimerFunds, Goldman Sachs, and Citi Ventures.

First stop: Singapore

Together with Hyundai and Kia, Grab will launch a series of EV projects in the region starting next year.

“Southeast Asia is a huge emerging market for EVs,” said Youngcho Chi, Hyundai group’s chief innovation officer and head of its strategy and technology division.

The first stop will be Singapore, where Grab claims to own the largest fleet of electric cars.

The focus is to bring down the costs for the ride-hailer’s driver-partners over the long term. Grab and its new investors will also work on building a network of quick-charge stations for the cars.

Hyundai first invested in Grab last January as part of the latter’s series G round.

Chi says the company chose Grab as its partner because of its “ever-expanding base of customers and merchants.”

Grab CEO Anthony Tan shakes hands with Hyundai Group executive vice chairman Euisun Chung / Photo credit: Grab

Today, the Singapore-headquartered ride-hailer operates in 235 cities in eight countries and is on track to hit US$1 billion in annual revenue. Its app has been downloaded more than 125 million times, giving users access to 8 million drivers, merchants, and agents. The firm has completed over 2.5 billion rides since it was founded in 2012.

Grab is transforming itself into an “everyday” app, offering additional services such as food and parcel deliveries, mobile payments and microloans, and travel. Part of the strategy is to forge partnerships on GrabPlatform, its suite of APIs.

Fighting for survival