Grab may remain unprofitable until 2023; raises over $300 million for financial services arm

Grab has been investing heavily on expanding the financial services business, and may remain unprofitable until 2023 according to Moody's

Grab may remain unprofitable until 2023; raises over $300 million for financial services arm | BEAMSTART News

Grab Financial Group, the financial arm for Southeast Asian ride-hailing, food delivery, and payments giant, Grab, has reportedly raised north of $300 million in a recent funding round from South Korea's Hanwha Asset Management.

Grab's financial arm was launched in 2018, with a focus on offering financial-related services such as micro-investments, loans, insurance, and more.

Hanwha's investment marks the first time Grab has raised external capital solely for its financial arm, as funding had always been allocated internally previously.

GrabPay on the app and debit card.

Earlier this week, Grab announced that the company's net revenues had risen by over 70% in 2020, and is inching closer to profitability for its ride-hailing business.

However according bond credit rating agency, Moody's, Grab may remain unprofitable until 2023 as the company continues aggressive spending on expanding their financial services business.

While Grab declined to comment on the matter, the new investments into Grab Financial Group suggests a possibility that the financial services arm may go public separately from the parent company. 

Grab hasn’t publicly discussed its IPO plans other than talks of a possible merger with rival, GoJek.

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