Grab raises $343m from Hyundai and Kia

They plan to pilot electric vehicle programs across Southeast Asia.

Grab clinched an additional $343m (US$250m) investment from Hyundai Motor Group and its affiliate Kia Motors Corporation which brings its total funds raised in ongoing round to $3.71b (US$2.7b), an announcement revealed.

The firms aim to establish an EV partnership which will bring together stakeholders from the EV industry to collaborate in improving EV adoption and awareness in Southeast Asia, the statement said.

Grab, Hyundai and Kia will launch a series of EV pilot projects in Southeast Asia starting with Singapore in 2019 which will focus on utilizing EVs and maximising cost-efficiencies for Grab drivers, according to the announcement.

“As home to one of the world’s fastest growing consumer hubs, Southeast Asia is a huge emerging market for EVs,” Youngcho Chi, Hyundai’s chief innovation officer and head of strategy and technology division, said.

The EV partnership will also work with regional stakeholders such as government and infrastructure players to improve EV infrastructure in the region, Grab said. The three companies will also explore how to customise EVs to optimise them for mobility service platforms.

Hyundai previously invested in Grab in January and the two companies began exploring collaborations in the EV sector. In August, Grab also announced a partnership with energy utilities provider SP Group to use their public EV charging network for Grab’s EVs.

Grab is on track to raise over $4.12b (US$3b) by the end of 2018, the statement revealed. Its current investors include Booking Holdings, Microsoft, Toyota and financial institutions such as Citi Ventures and Goldman Sachs Investment Partners.