Group led by S. Korea's Hanwha Asset invests $300 million in Grab's fintech arm

A Hanwha Asset Management Co. -led group has invested $300 million in Grab's financial services business. which is aiming to disrupt established financial services companies in Southeast Asia.

According to the ride-hailing and food delivery giant Grab, the $300 million was the first external funding for its fintech business, which will venture into insurance, lending, wealth management, and payments.

In September, it was reported that Grab was negotiating with insurers such as Prudential PLC, AIA Group Ltd. to raise $300 million to $500 million for its financial services unit.

GGV Capital, Singapore venture capital firm K3 Ventures, included fintech investment firm Flourish Ventures, backed by eBay founder Pierre Omidyar, also participated in Grab's funding.

Among Grab's investors is the Softbank Group Corp.

Reuben Lai, senior managing director at Grab Financial Group, noted that the pandemic accelerated the need for digital financial services in Southeast Asia, home to some 650 million people.

According to Tilman Ehrbeck, managing partner at Flourish, Grab has a real opportunity to bring financial services to Southeast Asian users who often are not reached by the traditional banking system.

Southeast Asia has a relatively higher mobile Internet penetration.

In December, Grab’s venture with Singtel received one of two of Singapore’s first digital full bank licenses.