Grab , a ride-hailing company in SEA has raised $300 million from Invesco to further boost its drive to become a “super-app” offering a plethora of consumer services. This also includes insurance services by becoming the region’s largest insurtech player by number of policies.
Early this year, Grab and Zhong An together formed a JV to launch a digital insurance distribution business in Southeast Asia. The platform offers innovative insurance products in a range of categories with fractionalized premiums, directly to users through the Grab mobile app. The marketplace is supported by global insurers who develop tailored insurance products for Southeast Asia. The platform addresses the usual pain points of consumer accessibility, unaffordable premiums, and easier payment options.
The partnership also announced the extension of their offering to its SME partners via the “Grow with Grab” program. The program is based on three pillars:
– Generate more earnings with new payment technologies
– Grow your business with micro loans
– Gain peace of mind with micro insurance
Micro loans and micro insurance both are currently not accessible by these SMEs. These micro programs require less regulatory compliance making them a threat to the banks in the long run.
Grab plans to use the newly raised investment to develop its financial services arm which is a critical step towards diversification from its existing ride-hailing competition.
Investors are confident on Grab’s ability to unlock new opportunities across on-demand mobility, delivery and financial services in the region.
According to Anthony Tan, Co-Founder Grab: “(it is) expanding its financial services unit as well as becoming south-east Asia’s top food delivery service by revenue by the end of 2019 are Grab’s two key objectives. Grab also aims to be the region’s largest insurance tech player by a number of policies and the top fintech by loan dispersal by year end.”