Grab investing US$2 billion in Indonesia funded by SoftBank
Southeast Asian ride-hailing company Grab said it would spend US$ 2 billion over five years in Indonesia using funds obtained from Japan’s SoftBank Group Corp, which wishes to boost its visibility to the region’s most affluent industry.
The expenditure will go towards establishing a transportation network of the next generation and transforming the delivery of critical facilities, such as healthcare, said Grab in a declaration.
“Through Grab, SoftBank will spend US$ 2 billion in the nation to fuel the digitisation of critical facilities and facilities,” said Grab headquartered in Singapore.
SoftBank Chief Executive Masayoshi Son said his business was spending US$ 2 billion in Grab to journalists earlier on Monday. A spokeswoman for SoftBank subsequently said Son referred to money already spent in Grab and stated his desire to allocate additional resources in the ride-hailing company.
So far from SoftBank and its Vision Fund, Grab has collected approximately US$ 3 billion.
SoftBank will assist Grab to construct a second office in Jakarta’s Indonesian city, Son said Monday as well.
Grab said the two businesses would spend in building an electronic vehicle-based shipping network for Indonesia. Grab will also use the cash to introduce e-health facilities to enhance physician and medical communication.
Grab’s contest with home-grown competitor Go-Jek will be doubling in Indonesia. Both tech startups have developed from ride-hailing phone providers to one-stop stores for facilities as diverse as creating deposits and delivering meals.
Son also said SoftBank would pour more resources into Indonesia’s largest internet competition, Tokopedia, and investigate business possibilities in the largest industry in Southeast Asia, including solar power and electric cars.
“We’re going to explore the possibilities. We’re keen in digital cars, electronics and loading devices,” Son informed journalists at Jakarta’s national palace.
Grab said in his declaration that since 2017, it had spent more than US$ 1 billion in Indonesia. Since last year’s acquisition of US competitor Uber Technologies Inc’s national activities, the company has been on a fundraising run.