Grab’s Fintech Arm Raises Over US$300M In Series A Funding Round

Grab’s fintech arm, Grab Financial Group (GFG), announced today (Jan. 14) that it has raised more than US $ 300 million in its Series A funding round, bringing its valuation to US $ 3 billion. U.S. dollars.

The tour is led by South Korean company Hanhwa Asset Management Co. Ltd. Other investors include K3 Ventures, GGV Capital, Arbor Ventures and Flourish Ventures.

GFG, which offers payments and financial services in lending, insurance and retail wealth management in the region, said it would use the new funds to continue helping more individuals and SMEs to access the benefits of financial services.

It will do so by investing more in talent and expanding its SEA offerings with more affordable, practical and transparent financial solutions.

According to GFG, this Series A marks the next stage in its growth, with total revenues increasing by more than 40% from 2019 to 2020.

During the year, it has witnessed important developments such as the massive consumer adoption of its new services. AutoInvest, its first retail wealth management product, nearly doubled the number of monthly users in December of last year.

Its insurance distribution launched in April 2020 has also seen exceptional growth, quadrupling its monthly active users to more than 4.5 million in three months and distributing over 70 million insurance policies to date.

Serving the underbanked segment in SEA

In addition to this momentum, the Monetary Authority of Singapore granted the Grab-Singtel consortium a full digital banking license to serve the under-banked segments.

GFG, which is not yet profitable, said this latest investment exploits the vast financial services market opportunity in SEA, which is expected to have full revenue potential of $ 60 billion by 2025.

The participation of Hanwha Asset Management as lead investor, the continued conviction of the first investors of Grab GGV Capital and K3 Ventures, as well as the funds of the renowned VC fintech companies Flourish Ventures (affiliated with eBay founder Pierre Omidyar) and Arbor Ventures, are key indicators of the investor. Confidence in GFG’s track record of delivering hyperlocal innovations at scale.

“We are at an inflection point in South East Asia as the pandemic has accelerated the need for digital financial services that help us grow and protect our income,” said Reuben Lai, senior managing director of Grab Financial Group.

“We are excited to leverage the expertise of leading investors who are familiar with financial services and fintech, so that we can continue to create and open up access to affordable and transparent financial services for millions of people and underserved small businesses; and making inroads into financial inclusion in the region. “

In a region where more than 70% of the adult population is still underbanked and where millions of SMEs are still in need of crucial financing, the GFG aims to help meet these unmet needs and close the deficit. financial inclusion.

With the COVID-19 pandemic bringing even more people and businesses online, GFG is well positioned to support more millions of Southeast Asians with its suite of digital financial services.

Featured Image Credit: Reuters

Our sincere thanks to
Source link

Jothi Venkat

Leave a Reply

Your email address will not be published. Required fields are marked *