Grab announced today (Oct 20) that it has secured debt facilities amounting to $700 million (S$951 million) which it said will go towards creating the largest car rental programme in Southeast Asia by the end of next year.
The amount, secured from global and regional banks, is the largest-ever debt financing raised by a Southeast Asian start-up, said Grab in a statement.
Grab said it will make more cars available for rental, provide more favourable rental terms and services for drivers, and increase the supply of vehicles on the road – making rides faster and more affordable for commuters.
Grab president Ming Maa said: “The record-breaking debt financing round clearly demonstrates high confidence in our business model and market leadership from several of the world’s leading banks.”
“Now with over 72% market share in the region, we will further consolidate our unassailable market lead through the largest car rental programme in Southeast Asia.”
Grab, which started in 2012, has over 1.8 million drivers in its regional network and has tripled its land transportation fleet in size since January this year.
It currently offers serves seven Southeast Asian countries: Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam and Myanmar.
In addition, Grab announced and exclusive partnership forged with SMRT to build the largest and most advanced fleet in Singapore.
With SMRT as its strategic partner, the fleet will include eco-friendly hybrid and fully electric vehicles for an improved driving experience, while drastically reducing drivers’ operating costs.