SoftBank Group Corporation (OTC: SFTBY) backed Grab, a ride-hailing company operating in Southeast Asia, is raising more than $850 million from Japanese firms Mitsubishi UFJ Financial Group Inc. (NYSE: MUFG) and TIS Inc.
MUFG and TIS will invest in Grab to create “accessible and affordable” financial services for Southeast Asia to “boost financial inclusion in the region.”
Grab, already involved in ride-hailing, food delivery, and digital payments in Southeast Asia, began providing consumer insurance and lending in 2019.
The company has applied for a digibank license in Singapore and has launched Grabinvest, a wealth management solution.
Grab’s President Ming Maa said, “We are excited to work with our partners MUFG and TIS to co-develop financial products and solutions for the region. Ensuring greater access to affordable and accessible financial services and products is key to growing financial inclusion in Southeast Asia.”
Why It Matters
MUFG, one of the largest banks in Japan, and TIS, network solutions and system integration services provider, will invest $706 million and $150 million, respectively, in Grab.
The collaboration with TIS will allow for the development of cashless payment options in Southeast Asia and Japan, according to Grab.
SoftBank’s shares closed 3.6% lower at $49.34 in Tokyo on Tuesday. The shares closed 4.53% lower at $24.01 in the otc market on Monday.
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