Grab looks to spin off financial services unit: Sources
Singapore-based ride-hailing company Grab has mandated a few banks to approach potential investors to take minority stakes in its financial services business as it looks to spin off the unit, according to two people familiar with the matter.
Grab has adopted an aggressive strategy to expand its services, from transport to food delivery and payments, as it races Indonesia's Gojek to become an app-for-everything in South-east Asia.
One of the sources said banks and insurance companies are among the potential investors in Grab's financial services business, adding that the plan is in an early stage.
The source said Grab was looking to raise less than US$500 million (S$680 million) through its spin-off.
"This is more about getting in strategic investors than just raising funds," said the source.
"Grab is still keen to keep control of the unit."
Grab is considering spinning off its payments and financial services businesses, the Financial Times said yesterday.
A Grab spokesman declined to comment on the potential spin-off but said the company always evaluated the capital structure of its businesses.
The latest move comes just months after the company announced it had raked in more than US$4.5 billion in a year-long funding exercise in the region's largest private financing round. - REUTERS