Friday, 26 April 2024
Grab secures $700 million in debt facilities and deepens partnership with SMRT
Grab Inc., an on-demand transportation and mobile payments platform in Southeast Asia, announced that it has secured debt facilities of up to US$700 million, the largest ever debt financing raised by a Southeast Asian start-up. Also today, Grab announced that it has signed an exclusive partnership with SMRT, Singapore’s premier multi-modal land transport provider, to build the largest and most advanced fleet in Singapore. With these bold steps, Grab will have the largest car rental fleet in Southeast Asia by Q4 2018.
The US$700 million debt facilities, secured from leading global and regional banks, will be used to create the largest car rental programme in Southeast Asia to meet robust demand from Grab’s driver partners in the region. Grab’s existing car rental business is already a critical element propelling the rapid growth of its driver network in Southeast Asia, where car ownership is relatively low. With over 1.8 million drivers in its regional network, Grab has the largest land transportation fleet in Southeast Asia, which has nearly tripled in size since January 2017. With these debt facilities, Grab will make more cars available for rental, provide more favourable rental terms and services for driver partners, and increase the supply of vehicles on the road, making rides faster and more affordable for passengers.
Ming Maa, President of Grab, said, “This record-breaking debt financing round clearly demonstrates high confidence in our business model and market leadership from several of the world’s leading banks. Now with over 72% market share in the region, we will further consolidate our unassailable market lead through the largest car rental programme in Southeast Asia.”
Grab will build the largest and most advanced taxi and private-hire car fleet in Singapore, with SMRT’s support as its strategic partner. The fleet will include eco-friendly hybrid and fully electric vehicles for an improved driving experience, while drastically reducing drivers’ operating costs. This will translate into higher driver earnings and more affordable rides for passengers.
Grab will have exclusive access to SMRT’s current and future taxi and private car fleet management capabilities, in addition to its entire network of taxis and Strides private-hire cars. Grab’s driver partners who rent vehicles through Grab’s car rental business, GrabRentals, will enjoy competitive vehicle rental and maintenance rates, have access to the most advanced commercial vehicles, and benefit from SMRT’s fleet management capabilities.
Lim Kell Jay, Head of Grab Singapore, said, “Grab is on track to build Singapore’s largest and most advanced commercial fleet. We are thrilled to deepen our partnership with SMRT, given their strong fleet management capabilities for hybrid vehicles. We continue to collaborate to complement and strengthen each other’s transportation network. Ultimately, we want to provide affordable services for driver-partners and passengers, and serve all segments of society including public transport users.”
Re-disseminated by The Asian Banker
