Grab Financial Group (GFG), Southeast Asia (SEA)’s leading FinTech platform, yesterday announced that it has raised over $300m in its Series A funding round, led by Hanwha Asset Management, South Korea’s leading asset management company.
GFG, which offers payments and financial services across lending, insurance and retail wealth management in the region, will use the new funds to continue helping more individuals and SMEs access the benefits of financial services. It will do so by further investing in talent, and expanding its offerings in SEA with more affordable, convenient and transparent financial solutions.
Other investors in the round include K3 Ventures, GGV Capital, Arbor Ventures, and Flourish Ventures, GFG said in a statement.
The Series A financing marks the next step in GFG’s growth as its total revenues increased by over 40% in 2020 vs 2019, 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. Its insurance distribution also continued its exceptional growth, quadrupling its monthly active users to over 4.5m in three months, and distributing over 70m insurance policies to date since launching last April.
Hanwha Asset Management’s participation as a lead investor, the continued conviction from early Grab investors GGV Capital and K3 Ventures, as well as the funds by renowned FinTech VCs Flourish Ventures (affiliated with eBay founder Pierre Omidyar) and Arbor Ventures, are key indicators of investor confidence in GFG’s track record of delivering hyperlocal innovations at scale.
Mr 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.”
Mr 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.”
In a region where over 70% of the adult population is still underbanked, and millions of SMEs still need crucial funding, GFG aims to help bridge these unmet needs and close the financial inclusion gap. With the COVID-19 pandemic bringing even more people and businesses online, GFG is well-positioned to further support millions of Southeast Asians with its suite of digital financial services.
Adding to this momentum, the Grab-Singtel consortium was recently selected by the Monetary Authority of Singapore to set up a full digital bank, a strong validation of its ability to serve under-banked segments.