Thai bank Krungsri to take part in MUFG’s investment deal with Grab

Thailand’s Bank of Ayudhya (BAY) is set to take part in the investment deal of its parent company, Mitsubishi UFJ Financial Group (MUFG), with Singapore-based ride-hailing giant Grab.

Photo credit: Krunsgri

BAY, the country’s fifth-largest bank by assets, will be investing in Grab through its fintech venture arm Krungsri Finnovate, said Thakorn Piyapan, BAY’s head of digital banking and innovation, in a Bangkok Post report. The VC arm will be a minority investor.

“Under the collaboration, we plan to synergize the strength of Krungsri [BAY’s marketing brand] and Grab in the quest for new banking business opportunities on the digital platform,” Piyapan said.

Last week, Bloomberg reported that MUFG will be pouring more than US$700 million in Grab as part of a strategic partnership. Through the deal, the bank plans to make a range of financial services, including insurance policies and loans, available to Grab users.

The two companies are expected to announce the partnership soon, according to an earlier Nikkei report that cited people briefed on the matter.

Kasikornbank, Thailand’s leading lender by assets, also backed Grab in November 2018. It injected US$50 million in the ride-hailer as part of Grab’s series H round, which also included investments from Hyundai, Kia, Booking,com, Experian, and Toyota.

Kasikornbank co-president Patchara Samalapa told the Bangkok Post that the bank will be maintaining its investment in Grab, but has no plans to follow up its previous investment.

“We aren’t concerned that Krungsri will also join and offer financial services on the platform,” Samalapa said. “The bank will concentrate on its own business development.”