Grab in talks with Prudential, AIA for fintech investment

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SINGAPORE: Southeast Asia's Grab is in advanced talks with Prudential PLC, AIA Group Ltd and others as it seeks $300 million to $500 million in investment for its financial services unit, people with direct knowledge of the matter told Reuters.

Grab, which evolved from ride-hailing app operator to one-stop shop for services as varied as food delivery and insurance, aims to reach agreements as early as October, the people said.

They said Grab Financial Group's pre-money valuation - the value of an unlisted startup before its next funding round - has been estimated at about $2 billion.The fundraising, coming as the COVID-19 pandemic decimates the global economic outlook, underscores the potential for technology-led financial services as the bulk of retail transactions go digital.

At Grab and Indonesian rival Gojek, lockdowns have savaged the transport business but have sparked a boom in food delivery. "Finalising new funding during these times could also help Grab in its sales pitch for the Singapore banking licence," said one of the people.

 

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