Business at an Inflection Point
The company said the financing round was led by the South Korean asset management firm Hanwha, while K3 Ventures, GGV Capital, Arbor Ventures, and Flourish Ventures also took part. K3 Ventures and GGV Capital were early investors in the company eight years ago.
“We are at an inflection point in Southeast Asia, as the pandemic has accelerated the need for digital financial services that help us grow and protect our incomes. We are delighted to draw upon the expertise of top investors who know financial services and fintech well,” Reuben Lai, Senior Managing Director, Grab Financial Group, said.
The first Series A funding round for Grab Financial Group values the fintech firm at $3 billion. Yong Hyun Kim, CEO of Hanwha Asset Management, praised GFG for its “exponential growth” recently.
“We expect GFG to continue its exponential growth on the back of an innovative business model which supports the changing broader lifestyle of consumers, as well as its highly synergistic relationship with Grab, the largest Southeast Asian unicorn.
“At the same time, we are particularly pleased to invest in a company that is fulfilling the socially responsible role as an enabler of financial services to the underbanked and unbanked population in Southeast Asia. We are very excited to be leading the Series A round for GFG as part of Hanwha’s expertise and interest in the fintech space and our ongoing investment into the sector.”
Kim is referring to 2020, when the fintech startup managed to record an increase of 40% in revenues after it made success in launching the first wealth management product. GFG said it will continue to focus on growth in the region where “over 70 per cent of the adult population is still underbanked, and millions of SMEs still need crucial funding.”
Grab and its biggest rival Gojek were reportedly in advanced talks to merge. However, Bloomberg reported that the talks have cooled and that the latter is now in talks with Tokopedia to merge and create a company worth $18 billion.
Startup Savant recently reported that Grab was seeking a $750 million loan to expand its business operations after 2020 revenue surged around 70%. The company became the most-valuable startup with a market valuation of more than $15 billion.
The ride-hailing startup Grab has raised $300 million for the purposes of its growing fintech startup business Grab Financial Group.
About the Author
Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.