Didi invests in Singapore-based mobile transportation platform Grab
CHINA'S ride-hailing application Didi Chuxing has co-lead the latest financing round of Southeast Asia's on-demand transportation service, Grab.
Didi and SoftBank Group will jointly invest up to US$2 billion to reinforce Grab’s dominant position in the region, according to a joint statement today.
Grab will raise an additional US$500 million from existing and new investors, meaning that the total value of funds raised will reach US$2.5 billion.
Grab boasts a transportation fleet consisting of 1.1 million drivers — with service available across seven countries and 65 cities — which handle nearly 3 million rides on a daily basis.
Didi first participated in Grab's fund raising in 2015, and in January this year, Didi made a strategic investment in Brazil's mobile transportation platform 99 as its step in global expansion.
"By deepening our strategic partnership, Didi and Grab reaffirm our shared commitment to innovating localized solutions to global urban development challenges and both companies look forward to working together with communities and policymakers in the region to fully embrace the opportunities in the upcoming transportation revolution,” Didi founder and chief executive officer Cheng Wei said in a statement.
Grab's proprietary cashless top-up payment service, GrabPay Credits, was also launched in December last year.
Didi has also teamed up with a number of online mobility companies in southeast Asia as well as car rental company Avis after regulatory draft rules introduced at the end of last year reduced the number of drivers and vehicles available for riders and the company has been seeking overseas expansion since then.