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Didi Chuxing, SoftBank To Invest $2 Bln In Uber Rival Grab

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Grab, the Singapore-based ride hailing company and Uber's biggest Asian rival, said Monday that Chinese ride-sharing company Didi Chuxing and Japan's SoftBank Group Corp. (SFTBF.PK) will invest a combined $2 billion to lead Grab's new financing round.

The new financing is intended to support Grab's efforts in strengthening its position in on-demand transportation and grow its mobile payments business in Southeast Asia. This will be the largest single financing in Southeast Asia.

Grab expects to raise an additional $500 million in the current financing round, bringing the total funding to $2.5 billion from its existing and new investors.

The company said it will continue to strengthen its market position and invest in GrabPay, its proprietary mobile payments solution.

Anthony Tan, Group CEO and co-founder of Grab said, "We're encouraged that these two visionary companies share our optimism for the future of Southeast Asia and its on-demand transportation and payments markets, and recognize that Grab is ideally positioned to capitalize on the massive market opportunities."

Didi Chuxing has triumphed over Uber in China. In August 2016, Didi Chuxing said it will buy Uber's China business, known as Uber China. Didi gave Uber a 17.5 percent stake in its business and also said it will invest $1 billion in Uber as part of the deal.

Uber also halted its operations in Taiwan from early February 2017 after the company faced opposition from the government for recruiting for its transportation service, despite its registration as a software company.

Grab is the most dominant on-demand transportation platform in the Southeast Asian region, with a 95 percent market share in third-party taxi-hailing and 71 percent in private vehicle hailing.

The company offers private car, motorbike, taxi, and carpooling services across 7 countries and 65 cities in Southeast Asia.

In February, Grab said it plans to invest $700 million in Indonesia over the next four years. The company will open an R&D center in Jakarta and also targets hiring 150 engineers over the next two years.

by RTT Staff Writer

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