Grab Financial Group says it has raised over $300 million in its Series A funding round, led by Hanwha Asset Management, a South Korean asset management company. Other investors in the round include K3 Ventures, GGV Capital, Arbor Ventures, and Flourish Ventures.
The Series A financing marks the next step in GFG’s growth as its total revenues increased by over 40% in 2020 versus 2019, amid key milestone developments.
Reuben Lai, senior managing director at Grab Financial Group, 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.”
These include the strong consumer adoption of its new services, with AutoInvest, its first retail wealth management product, nearly doubling in monthly users in December 20202. Its insurance distribution quadrupled its monthly active users to over 4.5 million in three months, and has distributed over 70 million insurance policies to date since launching last April.
Adding to this momentum, the Grab-Singtel consortium was recently selected by the Monetary Authority of Singapore to set up a full digital bank, a strong validation of its ability to serve under-banked segments.
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This latest investment underscores GFG’s ongoing building of a sustainable, diversified business to tap into the vast financial services market opportunity in Southeast Asia, which is expected to have a full revenue potential of US$60bn by 2025.
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.”
Hanwha Asset Management’s participation as a lead investor, the continued conviction from early Grab investors GGV Capital and K3 Ventures, as well as the funds by renowned fintech VCs Flourish Ventures (affiliated with eBay founder Pierre Omidyar) and Arbor Ventures, are key indicators of investor confidence in GFG’s track record of delivering hyperlocal innovations at scale.
GFG, which today offers payments and financial services across lending, insurance and retail wealth management in the region, will use the new funds to continue helping more individuals and SMEs access the benefits of financial services. It will do so by further investing in talent, and expanding its offerings in Southeast Asia with more affordable, convenient and transparent financial solutions.
In a region where over 70 per cent of the adult population is still underbanked, and millions of SMEs still need crucial funding, GFG aims to help bridge these unmet needs and close the financial inclusion gap. With the COVID-19 pandemic bringing even more people and businesses online, GFG is well-positioned to further support millions of Southeast Asians with its suite of digital financial services.