Grab fintech arm GFG raises US$300M Series A Funding
The round was led by Korean asset management company Hanwha Asset Management, with other investors such as K3 Ventures, GGV Capital, Arbor Ventures and Flourish Ventures, joining.
The fresh funds will go towards expanding its team and increasing “more affordable, convenient and transparent” financial solutions in the region, the company said in a statement.
This marks the inaugural external investment into GFG, which provides a suite of financial products in insurance, lending, wealth management and payments.
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.
GFG claims its total revenues have increased by over 40 per cent year-on-year in 2020, and expects to have a full revenue potential of US$60 billion by 2025.
The firm claims that its retail wealth management product, AutoInvest, nearly doubled its monthly users in December 2020.
In addition, its insurance distribution quadrupled its monthly active users to over 4.5 million within three months, distributing over 70 million insurance policies since launching in April 2020.
Capitalising on the rise of digital banks within the region, its digital bank consortium with local telco Singtel was awarded a digital bank license by the Monetary Authority of Singapore.
“We are at an inflexion point in Southeast Asia, as the pandemic has accelerated the need for digital financial services that help us grow and protect our incomes,” said Reuben Lai, Senior Managing Director of Grab Financial Group.
“We expect GFG to continue its growth on the back of a business model which supports the changing lifestyle of consumers. Besides, we are pleased to invest in a company that is fulfilling the socially responsible role as an enabler of financial services to the underbanked and unbanked population in Southeast Asia,” added Yong Hyun Kim, CEO of Hanwha Asset Management.