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Tag: Startups

  • Startups pin high hopes on blockchain, NFT technologies

    Startups pin high hopes on blockchain, NFT technologies

    Vietnamese startups have great expectations of the blockchain technology, envisaging practical e-commerce and entertainment impacts as the country pursues digital transformation.

    “We dream of becoming a billion-dollar company,” said Nguyen Tuan Quynh, chairman of book distributor Saigon Books, as he talked about a new project which uses blockchain in podcast and audiobook production.

    He said he wanted to create a blockchain-based platform for users, including celebrities, to produce audio content and make money. The audios will be distributed as non-fungible tokens (NFT), which are digital assets that represent objects like art, music, in-game items and videos, and have unique identifying codes. They are bought and sold online, frequently with cryptocurrency.

    “It will be a long run but we have taken the first steps. We also aim to have foreign-language to take this platform overseas,” Quynh said.

    Nguyen Tran Phi Yen, communications director of online event hosting platform Fan8.Club, is working on a project in collaboration with a hospitality partner that will create one million booking NFTs at premium hotels in Vietnam.

    “Blockchain is no longer something of the future. It has real products now.”

    Vietnamese startups have made headlines since last year with their use of the blockchain technology. Blockchain games like Axie Infinity and finance apps like Coin98 Finance have raised millions of dollars.

    Vietnam’s blockchain market is set to enjoy double-digit growth in the 2023-2027 period as 5G development across the country facilitates the formation of smart cities, according to a report by TechSci Research.

    Nguyen Thanh Nam, chairman of blockchain solutions provider OneBlock Labs, said that the technology could be used to trace origins of agriculture products, develop web browsers with better privacy protection and facilitate e-governance.

    “The government has made many efforts to create a national database using technology. With blockchain, more potentials can be reached,” he said.

    In 2020, the Vietnamese government listed blockchain a top tech research priority for application in the Fourth Industrial Revolution era.

    The Ministry of Science and Technology plans to let some blockchain companies to use the technology to try out some of their ideas for social benefits this year. Startups say they are aware of the challenges in developing the blockchain technology, high programmer salaries being one of them.

    “Hiring programmers to build a blockchain app costs four to five times that of a normal app,” said Quynh of Saigon Books said.

    Finding a team of experienced blockchain techies who understand the market is very difficult, said Nam of OneBlock Labs.

    “It is therefore crucial to start developing blockchain human resources.”

    Yen of Fan8.Club said that the world will soon have pre-established blockchain platforms for businesses to use and create their own products, and Vietnamese firms can take advantage of these instead of building everything from scratch.

    Some industry insiders have also warned about the potential to misuse blockchain.

    Pham Phuoc Nguyen, digital operations head at Coin98 Finance, said: “Not everything needs blockchain. Some can be done the traditional way.”

  • Foodpanda Hong Kong donates HKD3m to Covid-19 community support

    Foodpanda Hong Kong donates HKD3m to Covid-19 community support

    While we all wait for the rollout of the city’s anti-pandemic fund to support residents and businesses affected by the ongoing public health crisis, some of Hong Kong’s biggest companies have also stepped up to help. In a recent announcement, foodpanda, the largest food and grocery delivery platform in Asia, is also rising up to assist those that have been affected by the pandemic.

    Foodpanda is launching a series of support measures, amounting to a total of $3 million, including a donation of 12 thousand food vouchers ($1 million worth) for people in need and investment on initiatives for their restaurant partners, shop vendors, and foodpanda fleet.

    By mid-March, foodpanda food vouchers will be donated to 15 local charities, including Food Angel, Foodlink Foundation, ImpactHK, Hong Chi Association, Concern for Grassroots Livelihood Alliance, Tuen Mun District Women’s Association, Hong Kong Single Parents Association, Hong Kong Women Worker’s Association, Hong Kong Community Network, Chain of Charity Movement, Social Development Practice and Research Centre – Family Mutual Hub, among others. These vouchers may be redeemed on the foodpanda platform for food delivery or pick-up.

    Foodpanda restaurant partners will get a waived monthly listing fee until March 31 and 50 percent discount off paper bags and foodpanda sustainable packaging. Meanwhile, their shop partners will get up to 28 percent reduced commission rate for new small-medium sized local vendors that sell locally produced fresh produce and food ingredients. New vendors to foodpanda mall will get an expedited onboarding process of seven to ten days. The company’s delivery fleet will get free access to 7,000 rapid COVID-19 rapid antigen test kits, an extension of Covid-19 insurance plan coverage, as well as free face masks, hand sanitisers, and durable medical-grade self-sanitising photocatalyst coating for couriers’ thermal bags. The platform is also setting up a dedicated express registration link for F&B staff hard hit by the pandemic who want to apply and join the foodpanda fleet as couriers to gain extra income.

    “As members of the Hong Kong community ourselves, our entire team is dedicated to rallying together to find ways to give back to the local public and support our stakeholders, providing temporary relief measures for some,” shares foodpanda Hong Kong’s managing director Ryan Lai. “Apart from providing additional support through various initiatives, we hope that we can also encourage others within the industry to roll out support measures too, as we all fight to overcome the pandemic together,” he adds.

  • Vietnam set to become Asia startup hub

    Vietnam set to become Asia startup hub

    Vietnam could be Asia’s next startup hub after local companies saw a funding surge over 40 times in the last five years, a venture capitalist said.

    Venture funding for startups in Vietnam reached $2.1 billion last year, up from just $48 million in 2017, Binh Tran, co-founder of Ascend Vietnam Ventures said.

    The sector is now attracting top-tier Silicon Valley venture capitalists, including Goodwater Capital LLC, Accel Partners LP and Altos Ventures Management Inc, he added.

    “Vietnam saw a tremendous amount of maturity and growth early on, which will help it become a very important hub for the region,” he said.

    The country is forecast to have the second-largest digital economy in Southeast Asia by 2030, according to a report by Google, Temasek Holdings Pte and Bain & Co.

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  • One Mount develops comprehensive technology ecosystem

    One Mount develops comprehensive technology ecosystem

    One Mount provides solutions covering the entire financial services, distribution, real estate, and retail-sector value chain.

    Approved in June 2020, the National Digital Transformation Program aims to turn Vietnam into a country with digital technology competitiveness comparable to those of developed nations. This sets favorable conditions for Vietnam to actively capitalize on opportunities brought on by today’s technological revolution.

    According to experts, Vietnam has unlocked great potential for digital enterprises to thrive across the country. Technology has been the key factor leading to the explosion of innovative startups in the field of information technology.

    One Mount, with its comprehensive technology capabilities, was named at the Top 10 Vietnam ICT Companies 2021 event as a great example of the new breed of companies providing a suite of technological solutions and offerings for businesses and consumers across multiple life stages.

    Launched in the fall of 2019, One Mount had to navigate a global pandemic in its first two years of operation. This has brought it both challenges and opportunities as it sought to affirm the value of its technology business, which has contributed to the country’s technology and economic goals, even during this challenging period.

    After two years, One Mount has pioneered the deployment of technology solutions that help businesses digitalize their operations and solve bottlenecks in many traditional sectors.

    Leveraging its multi-faceted and modern technology offerings, One Mount is focused on optimizing benefits for value chains across a spectrum of industries and audiences including small to medium enterprises, end-consumers across distribution, retail and real estate, to name a few.

    In the distribution sector, VinShop has established itself as one of the country’s largest consumer goods distributors, which has helped to digitalize more than 80,000 small groceries. Taking advantage of technological advancements to provide maximum support for users, One Mount has connected businesses, manufacturers, and consumers within its ecosystem, allowing goods to reach customers quickly while ensuring stable prices.

    Besides improving the income of thousands of small groceries, VinShop also helps ensure the supply of essential goods while helping consumers feel confident about the quality of products.

    One Mount has developed a lifestyle super app with VinID, a loyalty platform serving millions of users on a monthly basis. VinID recently refined its point tiering system and is rolling out a more dedicated personalization engine, bringing users a more curated experience for their favorite products and brands.

    Meanwhile, OneHousing and OneHousing Pro Agent has established itself as the number one distributor and supplier of Masterise Homes projects in Hanoi. In addition to its premium services, the myHome application integrated with VinID has attracted ten thousand of homeowners and households during its beta launch.

    With more products and premium services on the horizon, OneHousing is expected to transform the real estate landscape in Vietnam by providing a complete one-stop shop experience for home buying, selling and living.

    To realize this early success and fulfill its grand vision, One Mount has formed landmark strategic partnerships with reputable industry leaders like TechcomBank and Google.

    The former has bolstered the vision of bringing financial solutions to more people and underserved areas across Vietnam while the latter helped develop powerful technology infrastructure and AI capabilities via Google Cloud offerings.

    One Mount commits to supporting Vietnam’s digital transformation strategy.

    Recently, One Mount’s potential was affirmed by VINASA when the latter included it among its Top 10 Vietnam ICT Companies 2021. One Mount nabbed a spot in three different categories: Top 10 Companies Providing Digital Transformation Platforms, Top 10 Fintech Companies, and Top 10 Logistics and E-Commerce Companies.

    One Mount was selected by HR Asia Magazine as one of its Best Companies to Work For in Asia 2021 in recognition of its outstanding HR practices, attractive benefits, policies, and engaging work environment.

    With a large technological ecosystem, One Mount provides solutions and services along the entire value chain in the financial services, distribution, real estate, and retail sectors through its three core business units: VinShop, VinID, OneHousing.

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  • StanChart Exec Joins Blockchain Startup

    StanChart Exec Joins Blockchain Startup

    Taipei-headquartered XREX has named a managing director in Singapore as it sets its sights on expanding its platform in the region.

    Taipei-headquartered XREX has appointed Christopher Chye as managing director of XREX Singapore and director of product. In this dual role, he will oversee XREX’s businesses and operations in Singapore and play an instrumental role in bringing new value propositions to XREX’s clients, the startup said on Tuesday.

    Chye joins from Standard Chartered Bank, where he held roles in commercial banking, consumer banking, wealth management, and financial crime compliance. He was also a pioneer of Standard Chartered’s digital bank venture in Singapore, where he led the bancassurance, rewards, and loyalty, and brand and marketing pillars, and was executive director at its regional CEO office. He was previously a  management consultant with KPMG.

    In a separate announcement, XREX said it raised $17 million in pre-Series A funding led by CDIB Capital Group. The funds will be used to apply for financial licenses in Singapore, Hong Kong, and South Africa, and partner with banks and financial institutions, like payment gateways.

    Many of our team members are from or have lived in the markets where we serve. We keenly understand the struggles faced by many cross-border merchants who lack safe access to US dollar liquidity,» XREX CEO and cofounder Wayne Huang, said.

    XREX was launched in 2018 to drive financial inclusion in emerging markets by leveraging blockchain technology.

    The company uses blockchain technology to solve dollar liquidity shortage issues in emerging markets and has products like a payment escrow service and crypto-fiat exchange platform.

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  • Online market places for neighborhoods in Hanoi become popular

    Online market places for neighborhoods in Hanoi become popular

    With shops closed and delivery services facing restrictions due to the Covid-19 outbreak in Hanoi, apartment dwellers have stepped infill the supply gap by selling online.

    Thu, a clerk at a media company, who is working from home amid the social distancing, said: “I orders goods online for home delivery and pay through bank transfer. The goods are hung on my apartment door.”

    The online market, which serves Thu’s apartment block and others nearby, has over 2,000 members who buy and sell items like fish sauce, salt, cooking oil, rice, vegetables, fruits, meat, eggs, and processed foodstuffs, she said.

    Prices are slightly higher than at traditional markets, but people like Thu accept that because “we don’t have to go outside, minimizing contact and the risk of contracting the disease.”

    In the beginning many sold goods online for a little bit of extra income and even just for fun, but later, when their jobs were severely affected by the pandemic, it became their main source of income.

    “I order fresh pork from my hometown in the countryside, pack and deliver the meat to people in my residential area,” she said.Thai, a kindergarten teacher in Hanoi’s Ha Dong District, started selling foodstuff on an online market for residents of her apartment block when her kindergarten closed down.

    “Within 30 minutes of advertising pork online I often get orders for 50 kilograms.”

    Quang, an administrator of an online market of an apartment block in Cau Giay District, said the market sells essential goods with clear regulations on product quality and non-cash payment, and so has recently become busier, especially amid the Covid outbreak.

    Hanoi has gone over a month under a citywide social distancing order starting July 24, the longest such period since the novel coronavirus first appeared in the country. It has extended its social distancing order until September 6 as the novel coronavirus threat persists.

    The capital has recorded 2,909 local Covid-19 cases since the fourth coronavirus wave hit the country late April.

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  • India’s Zomato raises US$1.26 billion in IPO

    India’s Zomato raises US$1.26 billion in IPO

    Indian food delivery startup Zomato Ltd ` will raise US$1.26 billion by pricing its shares at 76 rupees each in its initial public offering, according to two sources with direct knowledge of the matter.

    The sources could not be named as the information has not yet been made public.

    Zomato did not immediately respond to a request for comment.

    The company, which is backed by Ant Group, will be valued at up to US$8 billion following the IPO which is the first for a food delivery group in India.

    The pricing is set at the top of the flagged range of 72 rupees (US$0.9649) to 76 rupees each at the start of the booking building process.

    Zomato, launched in 2008, collates restaurant reviews and offers home delivery of food, making it a competitor to the Swiggy and Amazon.com’s food delivery service.

    Swiggy was reported had raised US$1.25 billion in a private funding round from the likes of SoftBank’s Vision Fund 2 and Prosus.

    Zomato’s IPO was strongly backed by investors attracting bids worth US$46.3 billion as it was more than 38 times oversubscribed when the books closed on Friday, signalling confidence about the fast-growing sector.

  • Indonesia’s Bukalapak aiming for up to $800 million in IPO

    Indonesia’s Bukalapak aiming for up to $800 million in IPO

    Indonesian e-commerce firm Bukalapak is keen to raise as much as US$800 million in an initial public offering (IPO) in August, two people with knowledge of the matter said, the first of two big tech listings in Jakarta this year that will add long-sought luster to the local bourse.

    A mid-year debut could see it become Indonesia’s biggest listing in 10 years and the largest ever for the country by a startup. But those milestones will likely later be overtaken by the planned listing of GoTo – a new company to be formed by the merger of e-commerce rival Tokopedia and ride-hailing and payments firm Gojek.

    Tapping a sharp pick-up in investor interest in Southeast Asia’s rapidly expanding technology sector, Bukalapak, the country’s No 4 e-commerce firm, is aiming to sell 10 to 15 percent of the company and wants a valuation of between US$4-5 billion, the people said.

    A confidential listing prospectus has been submitted to the Indonesia stock exchange, one of the sources said.

    Proceeds from the offering could range between US$500 million and US$800 million depending on investor demand and market conditions, said the sources who were not authorized to speak on the matter and declined to be identified.

    Bukalapak, which said in 2019 it was valued at more than US$2.5 billion, declined to comment.

    The 11-year-old startup which claims to have more than 100 million users has a plethora of big-name investors backing it including Microsoft, Singapore sovereign wealth fund GIC, local media conglomerate Emtek, the investment arm of Standard Chartered, and South Korean web portal Naver Corp.

    Bukalapak was originally aiming to raise US$300 million from its domestic listing before looking to merge with a special purpose acquisition company (SPAC) in the United States, but it is now focusing solely on its IPO, one of the sources said.

    The listing, which sources say is set to take place mid-August, is a victory for Indonesia’s bourse which has been conducting an extensive charm offensive to convince the country’s thriving startups to list locally instead of heading to the US.

    Stagnant for many years, Indonesia’s total IPO deal value took a further hit during the coronavirus pandemic, more than halving in 2020 to US$470 million, Refinitiv data showed. So far this year, 15 companies have raised a combined US$125 million via IPOs.

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  • New fund to support startups in Vietnam

    New fund to support startups in Vietnam

    Two partners at U.S. venture capital fund 500 Startups have founded Ascend Vietnam Ventures with plans to invest in 25 local companies.

    Their early-stage investments will range from $500,000 to $2 million and be in tech startups in areas like finance, education, healthcare, productivity, and future of work, according to a statement.

    Around a third of the startups will receive follow-up investments of $4 million, it added.

    The fund was set up by Binh Tran and Eddie Thai, general partners at 500 Startups Vietnam, which was launched in 2016 by the Silicon Valley startup accelerator and VC fund to capitalize on Vietnam’s growing market.

    500 Startups Vietnam raised $14 million in 2018, which has been fully invested in more than 70 companies.

    Some of its notable investments have been in language learning app ELSA, Base.vn, which was acquired by IT giant FPT Corporation, and Axie Infinity, whose latest round includes Mark Cuban as an investor.

    Investment in startups in Vietnam jumped by 34 percent year-on-year in the first quarter to $100 million, according to a report by South Korean venture fund Nextrans.

  • Gojek and Tokopedia formally announce merger

    Gojek and Tokopedia formally announce merger

    Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia formally announced their merger today in a transaction that will create a technology powerhouse in the country’s largest deal.

    Sources familiar with the situation had earlier said the companies were seeking a $18 billion merger. Neither firm confirmed a valuation for the merged group, named GoTo.

    The deal comes as Gojek and Tokopedia seek to boost profitability some 10 years after they were founded by offering a bouquet of services under a single platform, extending a regional trend.

    Alibaba Group Holding and SoftBank Group Corp are among Tokopedia’s investors, while Gojek’s include Warburg Pincus and Tencent Holdings.

    Last month, Southeast Asia’s biggest ride-hailing and food delivery firm, Grab, clinched a $40 billion merger with a special purpose acquisition company. Meanwhile Singapore-based regional internet firm Sea Ltd, which operates e-commerce platform Shopee, is also muscling into food delivery and financial services.

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  • Startup scene reviving, says expert

    Startup scene reviving, says expert

    Vietnamese startups are attracting increasing attention from foreign funds, and there have been at least seven million-dollar investment deals in Q1.

    The biggest deals include a $100-million funding round by U.S. investor Warburg Pincus in payment app MoMo, a $15-million investment in English learning app ELSA by Vietnam Investments Group and U.S-based Susquehanna International Group, and $6 million into gifting platform Got It by local digital gaming group VNG.

    The other four investments, in hotel booking platform Go2Joy, med-tech startup Genetica, online real estate platform Citics, and live streaming platform GoStream, were all worth less than $3 million. According to Thai Van Linh, CEO of consulting firm TVL Group and senior advisor to venture capital fund Openspace Ventures, the startup ecosystem in Vietnam is making exciting progress.

    Vietnamese tech firms have been thriving mainly thanks to the advance of digitization and consumers moving online, buying and selling on social networks or simply communicating online, Linh said in an interview with VnExpress.

    “In the first quarter’s major deals, the role and impact of foreign funds have been quite evident, despite fears that the pandemic would deter their involvement.”

    Last year, was a time of reflection and creativity, with many businesses having to conduct comprehensive reassessments of their operations, products, and services to look for new ways to bring value to the customer, she said.

    “Venture capital funds have also undergone a similar process. They looked from different perspectives to find potential in each startup notwithstanding the obstacles ahead. To that end, many funds have invested in businesses with a large customer base or consistently growing revenues.”

    Long-term growth has also been also an important factor, she said. With more than 55 percent of its population aged below 35, Vietnam not only has a young population but is also very open to change and willing to try new products and adopt new technologies.

    There have also been a number of major events that are creating the foundation for the development of startups and confidence among foreign funds to participate.

    Vietnam has entered into several foreign trade agreements that make it easier for startups to expand their customer base to overseas markets, while the consistent development of infrastructure would help increase the productivity of logistics operations and improve people’s living standards, she added.

    The Vietnamese diaspora abroad has been moving back to the country, bringing with it the experience acquired by working for global companies. More Vietnamese students are choosing to return home, bringing with them international perspectives on innovation and growth. This demographic is being utilized by large corporations to create an abundant supply of human resources for startups, Linh said.

    Interest in Vietnam among foreign venture capital funds has steadily increased over the last 10 years though many still have their main offices elsewhere in the region, Linh said.

    “Their headquarters may be in Singapore and they only fly to Vietnam once a month or once a quarter to explore. Some major investment funds in established markets such as the U.S. have established regional offices focusing on the Asian market.”

    Singapore-headquartered Openspace, which manages more than $425 million, has opened a representative office in Vietnam. “We believe the next unicorn startup will come from Vietnam, the Philippines, or Thailand,” Linh said.

    “If a founder tries to build a startup based on an ongoing trend, it is already too late compared to incumbents in that market.”

    Instead, they have to have a product ready, build a customer base, and run it smoothly before a trend emerges, she said.

    Asked about imminent startup trends, she said that does not matter and now should be considered a time to explore and experiment.

    “I meet many business owners who are doing this. Covid-19 may have adversely affected their business, but then they come up with new ways to change. And now, they are setting on a new path.”

    Linh, who is also a judge on the business reality TV series Shark Tank Vietnam, said startups should not only think about money when tying up with investors but also consider other ways in which the latter could contribute, such as with strategic guidance and introduction to partners.

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  • Vietnamese studio bags $1 mln funding for new blockchain game

    Vietnamese studio bags $1 mln funding for new blockchain game

    Vietnamese game studio Topebox and its blockchain partner KardiaChain have raised $1 million for an upcoming blockchain game called My DeFi Pet.

    The investors include Shanghai-based venture capital firms Axia8 Ventures, OKEx Blockdream Ventures, and the venture capital fund of cryptocurrency exchange OKEx in Hong Kong. Vietnam-based venture capitalist Megala Ventures and Chinese game developer Animoca Brands have also pitched in.

    Based in HCMC, Topebox is the developer of hit games like Pocket Army, Sky Dancer: Free Falling, and King Rivals. It had bagged $1 million in the seed funding round from Singapore’s mobile game publisher Habby in April last year.

    My DeFi Pet is its first blockchain gaming project, which is set to launch globally in mid-May. The game will include decentralized finance (DeFi) and non-fungible token (NFT) features. NFT is a unit of data stored on blockchain that certifies a digital asset to be unique and therefore not interchangeable.

    Accordingly, players can earn tokens while playing the game, get rewards by participating in the game’s events and make profit from selling in-game characters.

    The Topebox developer team includes experienced game producers from Vietnam’s gaming giant VNG and leading global mobile video games developer Gameloft.

    It aims to have it business appraised and valued at $150 million in the next 3-5 years.

    Before My DeFi Pet, Vietnam had developed another blockchain game called Axie Infinity, released in 2018. It was developed by Vietnamese game developer Sky Marvis and was the first blockchain game developed in Southeast Asia.

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  • Startups see investment rise by 34 pct

    Startups see investment rise by 34 pct

    Investment in startups jumped by 34 percent year-on-year in the first quarter to $100 million, with foreign investors being dominant. But the number of deals continued to fall, almost halving from 2019 to 16, according to a report by South Korean venture fund Nextrans. Foreign investors outperformed their local counterparts with nine deals, it said.

    Seed funding and series A investment, the first two stages, remained dominant, accounting for 70 percent of the deals. Fintech once again led with four of the 16 deals, followed by logistics, hospitality and real estate.

    Vietnam is expected to grow at the fastest rate in Southeast Asia in terms of digital financial services revenues in the next five years, reaching $3.8 billion by 2025, the report said. Other sectors such as e-commerce and medtech are also expected to boom in the coming years, it added.

    The most notable deals in the first quarter included an investment of $2.6-million from a group of investors led by Singapore venture capital firm Jungle Ventures in electric motorbike brand Dat Bike, and a $1 million by investment fund AppWorks in healthcare service booking platform Docosan.

    A venture capital fund alliance comprising 17 investment companies are committed to investing $800 million in Vietnamese startups in 2021-25.

    The government has also been making efforts to support startups, with former Prime Minister Nguyen Xuan Phuc approving the National Digital Transformation Program in June last year.

    Startup events have been organized to help new companies promote their ideas and connect with potential investors, attracting thousands of participants.

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  • Grab set to announce deal with US SPAC at $40 billion valuation

    Grab set to announce deal with US SPAC at $40 billion valuation

    Grab Holdings is set to announce as early as Tuesday a merger with U.S.-based Altimeter that will value Grab at nearly $40 billion and lead to a public listing.

    The merger will make it the biggest blank-check company deal ever. Southeast Asia’s largest ride-hailing and food delivery firm Grab’s agreement with a special purpose acquisition company (SPAC) backed by Altimeter Capital includes a $4 billion private investment in public equity (PIPE) from a group of Asian and global investors including Fidelity International and Janus Henderson, three people said.

    Grab declined to comment. There was no response from Silicon Valley-based Altimeter to an emailed request for comment.

    The two fund managers also did not respond to an emailed query. The sources declined to be identified due to the sensitivity of the matter.

    The deal for Singapore-based Grab, which sources have previously said was valued at just over $16 billion last year, is a big win for its early backers such as Japan’s SoftBank Group Corp and China’s Didi Chuxing.

    A U.S. listing will give Grab extra firepower in its main market, Indonesia, where local rival Gojek is close to sealing a merger with the country’s leading e-commerce business Tokopedia.

    Grab, whose net revenue surged 70 percent last year, is yet to turn profitable, but it expects its biggest segment – the food delivery business – to break even by end-2021, as more consumers shift to online food delivery after the Covid-19 pandemic.

    The nearly $40 billion valuations is based on a proforma equity value, two of the sources said.

    With operations in eight countries and 398 cities, Grab is already Southeast Asia’s most valuable start-up.

    Leveraging its ride-hailing business started in 2012, the firm has expanded into offering food and grocery deliveries, courier services, digital payments, and is now making a big push into insurance and lending in a region of 650 million people.

    Cash-rich, U.S.-listed Sea is also muscling into food delivery and financial services in Indonesia. Both Grab and Sea won digital bank licences in Singapore last year.

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  • Grab to List in New York Via Blockbuster SPAC

    Grab to List in New York Via Blockbuster SPAC

    The deal – the largest merger between a company and a blank cheque company – will value the SoftBank-backed firm at about $35 billion.

    The Singapore-based technology group could finalize an agreement to list with one of Altimeter Capital’s special purpose acquisition companies (SPACs) as soon as this week. Grab will raise about $2.5 billion through private investment in public equity (Pipe), which typically involves selling shares in a private arrangement with investors. Of that, close to $1.2 billion will be funded by Altimeter, which will also backstop the sale of any shares in the SPAC by public shareholders when the deal is announced, the report said.

    Grab founder Anthony Tan will own 2 percent of the listed entity, the pink paper’s sources said. Softbank, one of the company’s biggest investors, will also be looking at a major payday.

    Founded in 2012, Grab, which started out as a ride-hailing service, now provides food delivery, payments and insurance, among other services on its app, and holds a digital banking license in Singapore. It serves a regional consumer market of 655 million people in countries like Indonesia, Thailand and Vietnam.

    Gojek, Grab’s main regional rival, is in advanced merger talks with local e-commerce marketplace Tokopedia, ahead of a planned initial public offering of the combined entity.

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