atans1

Offered money, Grab it

In Uncategorized on 29/06/2019 at 4:39 am

This seems to be the philosophy of Southeast Asia’s biggest ride-app company.

Grab has received an additional US$300 million investment from asset manager Invesco as part of plans to raise $6.5 billion in total capital this year.

“The additional investment in Grab takes Invesco’s overall total to US$703 million and re-affirms its belief in Grab’s vision and plan for the region,” Grab said in a statement on Jun 27.

Softbank-backed Grab said in April that it was looking to raise another US$2 billion this year to ramp up expansion, weeks after announcing more than US$4.5 billion of funding in Southeast Asia’s largest round of private financing.

Seems most of the money with go to developing fintech and insurance, not subsidise rides. Well it did out-subsidise Uber until the latter cried “Uncle”, pulled out of the region and took a stake in Grab in recompense. Grabbed Uber’s balls, Grab did.

  1. Grab will be applying for virtual banking license.

    It really has to find & build out some real profit-making operations before the next major recession hits & VC money dries up.

    This generation’s startups have replaced “clicks & eyeballs” with “revenue & customer base”. But overall FCF and profitability indicates that they are still burning billions of cash, with founders & senior mgmt allocating fat salaries and bonuses to themselves while the going is good.

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