On Tuesday, Ming Maa, president of Southeast Asian ride hailer Grab stated, it is raising $706 million from Mitsubishi UFJ Financial Group Inc (MUFG) and $150 million from Japanese IT services firm TIS Inc, as it attempts to expand its footprint in the financial services.
“MUFG’s investment into Grab is a vote of confidence in our super app strategy and our ability to build a long-term, sustainable business,” said Maa in a statement.
SoftBank-backed Grab said, it will use the funds to offer lending, insurance and wealth management products and services to Southeast Asian consumers and small and medium-sized enterprises.
Hironori Kamezawa, MUFG’s deputy president and incoming CEO stated, the bank will combine Grab’s advanced technologies and data management expertise with its financial experience.
“We believe that this alliance will also generate additional momentum for our ongoing digital transformation of MUFG,” said Kamezawa.
In a separate statement, Grab said, TIS Inc, which part of TIS INTEC Group, is investing $150 million into the company.