If you have ever been to Southeast Asia over the past couple of years then you would have heard about Grab. It’s the leading ride-hailing service in the region, one that gave Uber a tough time and eventually caused it to exit the market. Grab has now received a vote of confidence from Toyota in the form of a $1 billion capital injection as part of its latest funding round.
Grab is raising a new round of funding which is led by Toyota’s contribution of $1 billion. The deal values Grab at $10 billion, according to reports.
Toyota is going to get a board seat in return as well as the opportunity to position an executive in Grab’s team. Grab says that it will work with Toyota to “create a more efficient transport network that will ease traffic congestion in Southeast Asia’s megacities.”
This is the first time that Toyota is directly investing in Grab. It did pour some money into the company indirectly last year through its Next Technology Fund. Grab offers in service in some of the biggest markets in Southeast Asia, including but not limited to Thailand, Singapore, Vietnam, and others. Its app has seen more than 100 million downloads and the number continues to grow.