Grab mulls financial services business spin-off
SINGAPORE: Ride-hailing company Grab has mandated a few banks to approach potential investors to take minority stakes in its financial services business as it looks to spin off the unit, said sources.
Grab has adopted an aggressive strategy to expand its range of services, from transport to food delivery and payments, as it races Indonesia’s Go-Jek to become an app-for-everything in Southeast Asia.
One of the sources said banks and insurance companies are among the potential investors in Grab’s financial services business, adding that the plan is in an early stage.
The source said Grab was looking to raise less than US$500 million (RM2.07 billion) through its spin-off.
“This is more about getting in strategic investors than just raising funds,” said the source.
“Grab is still keen to keep control of the unit.”
Grab is considering spinning off its payments and financial services businesses, the Financial Times said yesterday.
A Grab spokeswoman declined to comment on the potential spin-off but said the company always evaluated the capital structure of its businesses.
The latest move comes just months after the firm, Southeast Asia’s most-funded start-up, announced it had raked in more than US$4.5 billion in a year-long funding exercise in the region’s largest private financing round.
Grab, backed by SoftBank, said last month it was seeking to raise another US$2 billion (RM8.3 billion) this year.
The start-up is pushing deeper into consumer credit and is expanding lending to small businesses as part of its big expansion into the financial services sector, an area it has earmarked for growth.