Grab, a ride-hailing business based in Singapore is expected to spend “several hundred million USD” in Vietnam, where the business is seeing its next significant development industry, just weeks after a $2 billion scheme was revealed in Indonesia.
The investment suggested is the recent instance of a top-notch global brand deepening its dedication to Vietnam, one of the fastest-growing economies in Asia. It also demonstrates Grab’s eagerness to bring his money to the job by raising billions of bucks from shareholders.
“Vietnam is very enthusiastic about us. We see features very close to Indonesia, “said Grab President Ming Maa in an interview with Reuters.
Go-Jek, based in Indonesia, is developing from ride-hailing app providers to one-stop stores for facilities as diverse as payments, food distribution, logistics and hotel reservations in Southeast Asia.
Grab, with its app on over 160 million mobile devices across eight nations, said its investment in Indonesia is aimed at building a transportation network of the next generation and transforming the delivery of critical facilities such as health care.
Like Indonesia, many Vietnamese middle-class and youthful customers use applications and websites to access facilities, Maa said.
“I’d expect us to invest in expanding our Vietnam company over several hundred million USD,” he said without providing particular information about the investment.
Vietnam ranks fifth or fourth among Grab’s top companies, said Maa, who entered the business from its main investor, Japan’s Softbank Group Corp, three years earlier, and a decade-long period at Goldman Sachs investment bank.
Grab teamed in 2018 to introduce a digital wallet with Vietnamese fintech company Moca. Grab created a joint venture with Credit Saison, a Japanese credit card company, last year to give customers and micro-entrepreneurs across Southeast Asia loans and credit analysis.
According to market data and analytics company App Annie, Grab was Vietnam’s most purchased ride-sharing app from January to July. Be is another ride-hailing rival apart from Go-Jek.
Singapore’s rich city-state is Grab’s second-biggest market, constructing an office of $135 million. The business, which has in the region more than 4.5 million riders, seeks to double its income this year to $2 billion.
In the first quarter, Maa said its complete gross merchandise volume (GMV) in food service, a sector where it is rapidly growing, has risen by 300%. GrabFood now represents 20% of the complete GMV of the company.
The company is lucrative in several of its industries in its mature ride-sharing business, Maa said, adding that Grab has no particular IPO intentions.