Grab lands $50M from Thailand’s Kasikorn Bank to further its fintech push
Southeast Asia ride-hailing firm Grab is continuing to add strategic investors to its ongoing Series H round — which is targeted at more than $3 billion — after it revealed Thai bank Kasikorn put in $50 million as part of a strategic partnership to advance its financial services strategy.
Kasikorn joins Hyundai ($250 million), Microsoft (undisclosed) and travel firm Booking ($200 million) as strategic backers announced over the past month. The round also includes Toyota, which invested $1 billion in its largest ride-hailing deal to date, and institutional investors OppenheimerFunds, Ping An Capital, Mirae Asset-Naver Asia Growth Fund, Lightspeed Venture Partners and Macquarie Capital.
In the case of Kasikorn, Grab is working with the bank to roll out its GrabPay payment service in Thailand, a country with more than 60 million people, as it begins to truly take steps to become a fintech player, in addition to ride-hailing.
The deal marks the completion of GrabPay efforts to reach the six largest markets in Southeast Asia, which also include Singapore, Malaysia, Indonesia, the Philippines and Vietnam. Grab has taken a mixed approach; it has gotten e-money licenses independently in Singapore, Malaysia and the Philippines, while it has found local partners in the other countries — including Thailand. It has also struck deals with others in fintech, including MasterCard, which will see it offer virtual debit cards inside the Grab app for all users next year.
The broad goal is to operate a payment network across Southeast Asia and among its cumulative population of over 620 million people. Grab believes that payments can be a glue that ties together its platform and compels customers to use multiple services beyond ride-hailing; for example, food delivery, on-demand services and a range of third-party-backed offerings that it is adding to its platform. There are also plans to go beyond payments and offer financial services such as loans.
Re-disseminated by SINGFIN from techcrunch