Grab says to invest $2 billion in Indonesia using funds from SoftBank

Business

FILE PHOTO – A Grab taxi drives on a street in Hanoi, Vietnam October 29, 2018. REUTERS/Kham

JAKARTA (Reuters) – Southeast Asian ride-hailing firm Grab on Monday said it will invest $2 billion into Indonesia over five years using capital received from Japanese technology investor SoftBank Group Corp (9984.T).

The investment will go toward creating a next-generation transportation network and transforming how critical services, like healthcare, are delivered, Grab said in a statement.

“SoftBank will invest the US$2 billion into the country through Grab, to drive the digitization of crucial services and infrastructure,” said Singapore-headquartered Grab.

It said it will make the investment from the near $3 billion capital raised in total from SoftBank.

Earlier on Monday, SoftBank Chief Executive Masayoshi Son told reporters his company was investing $2 billion in Grab. He did not specify whether he was referring to fresh funds or money previously announced.

SoftBank will also help Grab build a second headquarters in the Indonesian capital of Jakarta, Son said.

In March, SoftBank put in nearly $1.5 billion through its Vision Fund, as the Southeast Asian firm extended a fundraising drive ongoing since acquiring the Southeast Asian operations of U.S. rival Uber Technologies Inc (UBER.N) last year.

Grab could not be immediately reached for comment on Monday. In its statement, it said it has invested over $1 billion in Indonesia since 2017.

Reporting by Agustinus Beo Da Costa; Writing by Kanupriya Kapoor; Additional reporting by Aradhana Aravindan and Anshuman Daga; Editing by Christopher Cushing

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