Uber rival Grab raising $2 billion from SoftBank

Uber Applied sciences Inc’s [UBER.UL] greatest rival in Southeast Asia, is raising as a lot as $2 billion in funding from Japan’s SoftBank Group (9984.T) and China’s high ride-hailing agency Didi Chuxing, the Wall Road Journal reported on Friday.

The deal, which might shut within the subsequent few weeks, would worth Singapore-based Grab at greater than $5 billion, the Journal reported, citing individuals accustomed to the matter.

The reported funding comes amid efforts by Grab to remodel right into a shopper expertise agency that additionally affords loans, digital cash switch and money-market funds.

Grab declined to remark, whereas SoftBank and Didi didn’t instantly reply to Reuters requests for remark.

Grab, which operates its ride-hailing platform in 55 cities throughout seven international locations, raised $750 million in a funding spherical in September, with sources then valuing the five-year-old startup at over $three billion.

The reported deal additionally comes at a time when San Francisco-based Uber, the world’s largest ride-hailing service, faces setbacks at residence ranging from accusations of a sexist work tradition and driver protests.

Uber’s challenges have culminated within the departure of co-founder and CEO Travis Kalanick, who stepped down underneath investor strain final month.