Grab is a Singapore-based ride-hailing firm. The company sees Vietnam as its next major growth market. Grab major investment in Vietnam announced weeks after it invested $2 billion in Indonesia.
The company is Southeast Asia’s biggest startup with an estimated valuation about $14 billion. Grab, now has more than 160 million customers across eight countries.
This investment is an example of regional brand deepening its commitment to Vietnam. This move is the company latest effort to beat its Indonesia-based rival, GoJek.
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Why Grab Chooses Vietnam?
Vietnam is one of Asia’s fastest-growing economies. The country has also shown eagerness of Grab.
The company sees Vietnam, like Indonesia, has many middle class and young consumers who are actively using its app. Besides, Vietnam ranks third or fourth among Grab’s top market.
From January to July, alone, Grab has been Vietnam’s most downloaded ride-sharing app. Therefore, Grab President, Ming Ma, mentions that the company plans to invest over several hundred million dollars in Vietnam.
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Currently, Grab has partnered with Vietnamese fin-tech firm, Moca. They partnership begun in 2018. With their partnership, they launched a digital wallet.
Besides, Grab has also formed a joint venture with Credit Saison, last year. With that, Grab offers loans and credit analysis to consumers across Southeast Asia.
With this move Grab remains confidence to sustain its high growth rates. The company, now, rely on Toyota, Microsoft, China’s Didi Chuxing and Hyundai as its backers.
Moreover, Grab now is also developing the region’s largest payment mobile wallet. Consequently, it gives Grab valuable data insight into customers and drivers on its network.
With that insight, it plans to create specific financial products including in insurance, credit and ultimately wealth management offerings.
Southeast Asia’s internet economy is expected to exceed $240 billion by 2025. Thus, with once Grab successful to build financial product for the region, it will acquire that profit.
