Grab announced today that it is receiving US$1 billion in fresh investment from Toyota as part of an ongoing funding round being led by the Japanese auto giant.
The Singapore-based company said that the funding will help it “create a more efficient transport network that will ease traffic congestion in Southeast Asia’s megacities, make mobility accessible for all, and provide driver-partners with increased income opportunities.”
Grab also said that some of the capital will be dedicated to expanding its other services – such as its GrabPay e-wallet and food-delivery platform GrabFood – in the region. GrabFood officially launched in Malaysia and Singapore late last month following the discontinuation of UberEats, which Grab had taken over as part of its acquisition of Uber’s regional operations earlier this year.
As part of the investment deal, Toyota and Grab will deepen their existing collaboration on connected car technologies and tech-driven vehicle insurance. A Toyota executive will also join Grab’s management team.
Toyota previously joined Grab’s US$2.5 billion series G round, which closed earlier this year. The SoftBank- and Didi Chuxing-led investment [broke Southeast Asian records] for the largest-ever VC funding round, according to KPMG.
The Wall Street Journal reported last month that the ride-hailing firm was seeking around US$1 billion funding. It isn’t clear at this stage if Toyota’s investment is related to this.
Grab claimed that this marks the largest single investment made by an automaker in the global ride-hailing sector to date.
In addition to Toyota, Grab also counts carmakers Honda and Hyundai among its investors.
This is a developing story. Check back for updates.
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