Singapore-based ride-hailing start-up Grab Holdings Inc. has raised US$50 million in a strategic investment from Thailand-based financial firm KASIKORNBANK (KBank) with the aim to launch a co-branded mobile wallet GrabPay in Thailand, according to an announcement.
As part of the strategic deal, Grab Financial, the fintech arm of Grab, will introduce GrabPay, a mobile wallet combined with features from KBank’s K PLUS app and the Grab app.
The strategic investment from KBank is part of Grab’s ongoing fundraising round, as the firm has raised over US$2 billion for its current round of financing and is on track to raise over US$3 billion by the end of this year, it said in October.
Just yesterday, Grab received an US$250 million investment from South Korea’s auto maker Hyundai Motor Group and Kia Motors Corporation to establish a partnership to pilot EV programs across Southeast Asia. Last month, Booking Holdings invested US$200 million in Grab.
The mobile wallet is scheduled to launch in the Grab app as soon as early 2019 in Thailand and aims to make it more convenient for users to adopt cashless transactions. Users will be able to pay for transportation and delivery services, transfer funds, purchase products and services online, and make QR-code payments in restaurants and shops across Thailand.
According to Bank of Thailand, 68% of all transactions in Thailand are carried out in cash, which costs the Thai economy millions of Baht each year.
KBank and Grab will also work together to offer products to their customer base, including loans to merchants, corporate transport expense management, as well as promoting KBank through Grab’s advertising solutions.
"Users don’t want a separate e-wallet for every type of purchase," said Reuben Lai, Senior Managing Director, Grab Financial. "Our users can go beyond the Grab platform and pay for all types of services, from streetside stalls to e-commerce, online services and financial services increasingly as well."
Established in 2013, Grab operates car-hiring businesses in Southeast Asia and has become the dominant player after acquisition of Uber’s Southeast Asia business in April this year. It is still in intensive competition with Go-jek in the region.
Launched in March, Grab Financial was a joint venture formed between Grab and Japanese credit card company Credit Saison to provide loans and lending services in the region.
Previously, Grab Financial expanded its financial business to other five ASEAN countries, namely Singapore, Malaysia, Indonesia, Vietnam and Philippines, by acquiring companies and forming partnerships to spread its mobile wallet over last two years.
Grab Gets $50M Strategic Investment From KBank To Launch Mobile Wallet GrabPay In Thailand appeared first on China Money Network.