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Uber Rival Grab's Fundraising Values It at $6 Billion

24 Jul 2017 3:36 am
By Liza Lin and Newley Purnell 

Singapore-based ride-hailing firm GrabTaxi Holdings Pte. will raise $2.5 billion in Southeast Asia's largest-ever round of startup fundraising as it seeks to battle Uber Technologies Inc. across the populous region, the company said Monday.

Japan's SoftBank Group Corp. and Chinese ride-hailing company Didi Chuxing Technology Co. will lead the current round of investment, pouring up to $2 billion into Grab, as the company is known. Grab, which operates private-car, taxi, motorcycle, and carpool bookings across seven countries in the region, will raise an additional $500 million from existing and new investors, the company said. The new investors weren't disclosed.

The deal would value Grab at more than $6 billion, making it the region's most-valuable startup, according to a person familiar with the situation.

The Wall Street Journal reported earlier this month on the fundraising round.

Grab's cash injection adds to Uber's challenges as it pushes for global expansion. The San Francisco firm is struggling with management challenges at home and strong competition from rivals overseas.

Uber co-founder Travis Kalanick relinquished his role as chief executive last month after an investigation into sexual harassment and sexism at the company, although he remains a director.

Grab, founded in 2012 by Harvard Business School classmates Anthony Tan and Tan Hooi Ling, will use the money to strengthen its market share and mobile-payments business, the company said. Southeast Asia's ride-hailing market could grow to $13.1 billion by 2025--from $2.5 billion in 2015--according to a report last year by Alphabet Inc.'s Google and Singapore state-investment firm Temasek Holdings.

Write to Liza Lin at Liza.Lin@wsj.com and Newley Purnell at newley.purnell @wsj.com
 

(END) Dow Jones Newswires

July 23, 2017 23:36 ET (03:36 GMT)

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