Hyundai Invests $250mn In EV (Electric Vehicles) Startup ‘Grab’
Grab is a Singapore-based EV (Electric Vehicles) startup that acquired the Southeast Asia business from competing ride-hailing giant Uber in early 2018. As they prepare for their ongoing Series H fundraise, it has been revealed that Korean automotive manufacturer Hyundai Motors has decided to pump in $250 million into the new-age EV cab firm.
This won’t be the first time Hyundai invests in Grab. Their first investment happened in January, and in the latest round, Hyundai will be joined by participating investors such as Microsoft, which is investing an undisclosed amount, and Booking Holdings – the parent company behind Booking.com that is investing close to another #200 million. Grab plans to take the total Series H fundraise pool to $3 billion before the end of this year.
Grab attracts extraordinary interest from major investors
Grab’s first major investment ($1 billion) was announced in June, when Toyota Motors offered to match the requisite amount. Later, enthusiasm from other institutional backers elevated that pool to nearly $2 billion. Such backers included the likes of OppenheimerFunds, Ping An Capital, Mirae Asset-Naver Asia Growth Fund, Lightspeed Venture Partners and Macquarie Capital. Today’s announcement revealed that two more institutional backers had joined Hyundai in the current round, namely Goldman Sachs Investment Partners and Citi Ventures.
Put together, the sum total of all investments in Grab’s series H round has taken the company’s fundraise pool to $2.7 billion, and the startup is now valued at more than $11 billion. If that’s not all, China’s investment firm Didi and the venture capital giant SoftBank are also invested in the company, having pumped in close to $6 billion so far. This is a record achievement for any Southeast Asian startup, in line with its claim of 125 million downloads across eight geographical markets, and 2.5 billion rides completed till date.
Grab commits to work with Hyundai over EV series
Spokespeople at Grab have also confirmed that the startup plans to work with Korean automotive-maker Hyundai to introduce a series of pilot electric vehicles in the Southeast Asian market, featuring a combination of cars manufactured under Hyundai’s flagship brand, as well as its wholly-owned subsidiary brand ‘Kia’. Grab has already started a rollout of Hyundai’s IONIQ vehicle in its fleet in Singapore earlier this year.