Southeast Asian ride-hailing app Grab has raised $300m (£220m) to help fund further expansion of its rapidly-growing financial services arm.
The series A funding round was led by South Korea’s Hanwha Asset Management, while existing investors K3 Ventures and GGV Capital also participated.
Grab, which also offers food delivery services, said the cash injection followed a 40 per cent year-on-year rise in revenue for 2020.
The Singapore-based app has started to move into financial services as it looks to unseat traditional players in the region.
The company said user numbers for its Auto Invest retail wealth management service doubled in December, while its insurance product also saw rapid growth.
Grab said it will use the fresh funding to expand its financial services offering with “more affordable, convenient and transparent financial solutions”.
“We are at an inflection point in southeast Asia, as the pandemic has accelerated the need for digital financial services that help us grow and protect our incomes,” said Reuben Lai, senior managing director, at Grab.
“We are delighted to draw upon the expertise of top investors who know financial services and fintech well, so that we can continue to build and open up access to affordable and transparent financial services for millions of underserved people and small businesses, and make inroads into financial inclusion in the region.”
Grab, which is backed by Softbank, has developed rapidly since its inception as a taxi-booking app.
Much like its local rivals such as Gojek, the company is now looking to evolve into an all-purpose app that offers a range of services.