South East Asian ride-hailing service Grab has raised $2.5bn (£1.9bn) from investors in a blow to one of its biggest industry competitors, Uber.
Didi Chuxing, Grab’s Chinese peer, and Japan’s SoftBank will contribute up to $2bn.
Grab will boast a valuation of more than $6bn at the close of this round of funding, a source close to company told Reuters.
The Singapore-based company said it has a 95 percent market share of southeast Asia’s third-party taxi-hailing services sector.
Founded in 2012 by two Malaysian Harvard Business School classmates, Grab now operates in more than 60 cities across Malaysia, Indonesia, Philippines, Vietnam, Thailand and Myanmar.
As many as 1.1m drivers work for Grab.
Southeast Asia’s ride-hailing market will grow from revenues of $2.5bn in 2015 to $13.1bn by 2025, according to a joint study by Google and Temasek, the Singapore-based investment company.
Anthony Tan, group CEO and co-founder of Grab said in a statement:
We’re encouraged that these two visionary companies share our optimism for the future of Southeast Asia and its on-demand transportation and payments markets.
Earlier this year Grab made its first major acquisition, buying Indonesian payment service Kudo.
Meanwhile, Uber has been hit with a raft of setbacks in recent months as it grapples with a toxic internal culture, adverse international regulation, and seemingly never ending bans.
Verdict has put together a list of all the places Uber can no longer call home.