Singapore : Southeast Asia's Grab said Japan's Mitsubishi UFJ Financial Group Inc (MUFG) and IT services firm TIS Inc have agreed to invest a combined USD 856 million in the ride-hailing firm, as it seeks to expand aggressively into financial services.
MUFG, Japan's biggest bank by assets, has agreed to invest USD 706 million, the companies said in statements.
"MUFG's investment into Grab is a vote of confidence in our super app strategy and our ability to build a long-term, sustainable business," Ming Maa, President, Grab said.
Grab, backed by SoftBank Group Corp, said it will use the funding to offer lending, insurance and wealth management products and services for Southeast Asian consumers and small and medium-sized enterprises.
Hironori Kamezawa, Deputy President and incoming CEO, MUFG said the bank will combine Grab's advanced technologies and data management expertise with its financial experience. "We believe that this alliance will also generate additional momentum for our ongoing digital transformation of MUFG," he said.
Separately, Grab also said that TIS Inc, part of TIS INTEC Group, is investing USD 150 million in the company.
Given a low interest rate environment at home, Japan's MUFG has focused on boosting its Southeast Asian business by acquiring stakes in some of the lenders in the region.
Grab is evolving from ride-hailing app operator to become one-stop shop for services as varied as payments, lending, food delivery, logistics and hotel bookings in Southeast Asia.
In Singapore, Grab has teamed up with Singapore Telecommunications (Singtel) and applied for an online banking licence in the country.