SoftBank Group Corp is near to close a deal to pump in $1.5 Billion (almost Rs. 10,500 Crores) in Grab. This is 3 times an earlier expected $500 Million (almost Rs. 3,500 Crores) deal. The deal comes at a time when the biggest ride-hailing firm of Southeast Asia seeks to branch out, a source well aware of the matter claimed.
The 6-year old Grab has so far lifted more than $6.5 Billion, led by SoftBank, Toyota Motor Corp, and Chinese ride-hailing firm Didi Chuxing. After a fund lifting in August, Grab was capitalized at almost $11 Billion. SoftBank first purchased a share worth $250 Million in 2014 in Grab just as Grab started vying in Southeast Asia against Uber Technologies.
Its newest funding in the ride-hailing company will arrive from its Vision Fund, which after lifting over $93 Billion in 2017 is the largest private-equity fund in the world. SoftBank is likely to finalize its investment this month in Grab and a declaration is expected soon, claimed the source, refusing to be named as the data is not public. Grab refused to comment, while a spokesperson at SoftBank did not have an instant answer.
On a related note, SoftBank earlier was in talks to take a majority share in WeWork Co. This would be a huge bet on the 8-year-old supplier of shared office space, as per sources well aware with the discussions.
The deal could total in the range of $15–20 Billion and might likely come from Vision Fund by SoftBank, some of the sources claimed. The $92 Billion Vision Fund, which is supported majorly by Abu Dhabi and Saudi Arabia wealth funds along with SoftBank, already controls almost 20% of WeWork after in 2017 promising $4.4 Billion in equity shares at a $20 Billion capitalization.