finance news

SoftBank-backed Grab plans to raise $856mn from Japanese investors

SoftBank-backed Grab plans to raise $856mn from Japanese investors
SoftBank-backed Grab plans to raise $856mn from Japanese investors
Southeast Asian ride-hailing company Grab is poised to raise $706 million from Mitsubishi UFJ Financial Group Inc and $150 million from Japanese IT services firm TIS Inc, as the company vies to bolster its financial service portfolio. President of Grab, Ming Maa was quoted dubbing MUFG’s investment “vote of confidence” as they eye to bolster a sustainable and long-term business in their ‘super app strategy.’ SoftBank-backed Grab stressed that they would be infusing to provide wealth management, lending and insurance products and services for SMEs and Southeast Asian consumers. Hironori Kamezawa, Deputy president and to-be CEO of MUFG, stated that the bank will amalgamate the sophisticated technologies and data management expertise of Grab with its financial expertise. He was optimistic of this alliance to become instrumental in their advancement towards the digital transformation of MUFG. With a low interest rate at home, MUFG has emphasized fostering its Southeast Asian business by acquiring shares in a few of the lenders in the landscape. Shoki Nagano, S&P Global Ratings associate director, reportedly said that Japan’s development on the baking and other fintech digitization lagged behind other developed countries. His mantra for banks was to make enough investments in novel technology and make adaptive management apt for ever-changing environments. Go-Jek, an Indonesia-based company is competing with Grab as ride-hailing app operators to become one-stop solution for services including lending, payments, hotel booking, food delivery and logistics in Southeast Asia. It is worth noting that Grab has collaborated with Singapore telecommunications Ltd. (Singtel) in Singapore and has already applied for an online banking license in the country. This week the news surfaced that Grab and Gojek are contemplating a potential merger. However, Gojek is striving to put all doubts to rest by stating that the recent media reports are inaccurate. Source credit: https://finance.yahoo.com/news/grab-raising-706-million-mufg-062510164.html

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.