Singaporean fintech Grab has raised over $300m in a Series A funding round to expand its growing financial services business.
Hanwha Asset Management led the funding round, which included investment from GGV Capital, Arbor Ventures, and Flourish Ventures.
Grab Financial Group (GFG) currently offers payments and financial services across lending, insurance and retail management to customers across Southeast Asia.
The fintech plans to use the new funds to help more individuals and SMEs access the benefits of financial services. To do this, Grab will invest further in talent, and expand its offerings in SEA with more affordable, efficient and transparent financial solutions.
Reuben Lai, Senior Managing Director at GFG, said: “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, so that we can continue to build and open up access to affordable and transparent financial services for millions of underserved people and small businesses, and make inroads into financial inclusion in the region.”
High unbanked population
In SEA, over 70% of the adult population is still underbanked with millions of SMEs still needing crucial funding. GFG aims to help bridge these unmet needs and close the financial inclusion gap.
Between 2019 and 2020, GFG’s total revenues increased by over 2020. These include the strong customer adoption of its new services – AutoInvest, its first retail wealth management product, nearly doubled in monthly users in December.
In addition, the Grab-Singtel consortium was recently selected by the Monetary Authority of Singapore to set up a full digital bank.
Yong Hyun Kim, CEO of Hanwha Asset Management, said: “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.”