Southeast Asia’s answer to ride-sharing giant Uber Technologies Inc. is getting a new investment from Japan’s SoftBank and China’s Didi Chuxing.
Herbert Smith Freehills and Paul, Weiss, Rifkind, Wharton & Garrison are advising SoftBank Group Corp. and Chinese car-sharing company Didi Chuxing on a financing round that could see Didi’s Southeast Asian counterpart Grab raise as much as $2.5 billion.
SoftBank and Didi, both of whom are existing investors in Grab, which used to be known as GrabTaxi, will jointly contribute $2 billion. The Southeast Asian company will raise an additional $500 million from other investors. This latest round will give Grab a valuation of $6 billion, according to the Financial Times.
Herbert Smith Freehills is representing SoftBank on the deal with a team led by Singapore partner Mark Robinson along with Tokyo partner Graeme Preston, Brussels partner Kyriakos Fountoukakos and Hong Kong partner Mark Jephcott. Jakarta associate firm Hiswara Bunjamin & Tandjung partner Sakurayuki is acting on Indonesian law.
Paul Weiss Beijing partner Judie Ng Shortell and Hong Kong partners Jack Lange and Betty Yap are advising Didi Chuxing on the deal.
Hughes Hubbard & Reed deputy chair and corporate co-chair Kenneth Lefkowitz and Sheppard, Mullin, Richter & Hampton are acting as outside counsel to Grab.
Grab was launched in 2012 in Malaysia by two Harvard Business School graduates Anthony Tan and Tan Hooi Ling. The app now operates in 65 cities across Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam and Myanmar with nearly 3 million daily rides. The company also operates GrabPay, a mobile payment app that it said could help customers in markets like Indonesia where the banking system is underdeveloped.