Grab and MUFG, and sometimes catching up is also trading.
According to foreign media reports, Japan ’s Mitsubishi UFJ Financial Group Inc (MUFG) will invest approximately $ 700 million in Singaporean giant Grab. According to people familiar with the matter, MUFG’s investment in Grab will be completed by the middle of this year. After the transaction, MUFG will become one of Grab’s largest shareholders and is expected to even surpass Softbank.
As one of the “super apps” in Southeast Asia, Grab was established in Singapore in 2012. Its business covers the fields of ride-hailing, mobile payment, takeaway, express delivery, insurance, etc., and covers Singapore, Malaysia, Indonesia, Thailand, Vietnam , Cambodia, Philippines, and Myanmar. In addition, Grab has more than 170 million users based on the number of downloads of the application. Grab’s “all the way” growth is inseparable from the continuous support of the capital behind it.
Speaking of Grab’s financing situation, according to Crunchbase data, as of November 2019, Grab’s total financing has reached $ 9.1 billion and its valuation has exceeded $ 14 billion, making it the first valuation in Southeast Asia. More than 10 billion US dollars of “Super Unicorn”. In Grab’s “finance history”, SoftBank, Didi, Uber, Temasek, GGV, Tiger Global have all thrown olive branches at it. Among them, Softbank has invested more than 2.6 billion US dollars. In fact, before MUFG, Grab’s Japanese capital was not only SoftBank, but Toyota and Yamaha from Japan were also Grab investors.
In recent years, as the Japanese domestic market has matured, the momentum of growth and innovation has also gradually slowed. Under the influence of this environment, a large number of Japanese capitals have rushed to overseas markets. Among them, Southeast Asia, India, and even Africa, which have just started, have become the targets of Japanese investors.
MUFG is no exception. Under the pressure of “stagnant” market growth, MUFG has also begun to expand overseas markets. According to foreign media, MUFG believes that Southeast Asia is a region with strong growth potential. It is reported that many Southeast Asians still do not have bank accounts. Among them, only 50% of Indonesians have bank accounts, while in countries such as Vietnam and the Philippines, this proportion is less than 30%. In comparison, the Japanese market is approaching 100% and is extremely saturated.
This Japanese bank acquired Thailand’s Ayudhya Public Co. (renamed Krungsri) in 2013 and has invested in local banks in Vietnam, the Philippines and elsewhere. This time, MUFG bet on Grab, which focuses on the Southeast Asian market.
It is reported that through this cooperation with Grab, in addition to providing loans and insurance services through Grab’s mobile platform, MUFG also wants to use Grab’s artificial intelligence systems and data analysis skills to work with online banks and IT companies. Gain more competitiveness in the competition.
For Grab, Grab has launched a mobile payment service (GrabPay), but when it comes to its loan-type services, Grab needs partners who can conduct credit review and risk control of lenders. MUFG can help. In addition, MUFG can help Grab negotiate regulatory approvals with financial institutions in various Asian countries.
What kind of spark can super-unicorns in Southeast Asia collide with Japan’s largest financial institution? let us wait and see.
文 | 云 晞 @ 出海
Picture | Pexels
