Grab Financial Group (GFG), the fintech arm of Grab, announced that it has raised over US$300 million in its Series A funding round, led by Hanwha Asset Management Co. Ltd., South Korean asset management company.
Other investors in the round include K3 Ventures, GGV Capital, Arbor Ventures, and Flourish Ventures.
GFG, which offers payments and financial services across lending, insurance and retail wealth management in the region, will use the new funds to further invest in talent, and expand its offerings in SEA with more affordable, convenient and transparent financial solutions.
The funding came at a time when GFG reported that its total revenue increased by over 40% in 2020 vs 2019 and is expected to have a full revenue potential of US$60 billion by 2025 amidst key milestone developments.
These include the strong consumer adoption of its new services, with AutoInvest, its first retail wealth management product, nearly doubling in monthly users in December 2020.
The firm said that its insurance distribution also continued its growth, quadrupling its monthly active users to over 4.5 million in three months, and distributing over 70 million insurance policies to date since launching last April.
Additionally, the Grab-Singtel consortium was recently selected by the Monetary Authority of Singapore to set up a full digital bank.
Reuben Lai, Senior Managing Director, Grab Financial Group, said,
“We are at an inflection point in Southeast Asia, as the pandemic has accelerated the need for digital financial services that help us grow and protect our incomes.
We are delighted to draw upon the expertise of top investors who know financial services and fintech well, so that we can continue to build and open up access to affordable and transparent financial services for millions of underserved people and small businesses, and make inroads into financial inclusion in the region.”
Yong Hyun Kim, CEO of Hanwha Asset Management, said,
“We expect GFG to continue its exponential growth on the back of an innovative business model which supports the changing broader lifestyle of consumers, as well as its highly synergistic relationship with Grab, the largest Southeast Asian unicorn.
At the same time, we are particularly 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. We are very excited to be leading the Series A round for GFG as part of Hanwha’s expertise and interest in the fintech space and our ongoing investment into the sector.”