Home / Business / Grab pulls in $250M from Hyundai as ongoing round reaches $2.7B

Grab pulls in $250M from Hyundai as ongoing round reaches $2.7B

Grab, the Singapore startup that bought Uber’s Southeast Asia business earlier this year, continues to announce strategic investors for its ongoing Series H funding round. The latest edition revealed today is Korean automotive firm Hyundai, which is investing $250 million.

Hyundai first invested in Grab in January, and it joins recently announced investors Microsoft (undisclosed) and Booking Holdings ($200 million) in the round, which is aimed at reaching at least $3 billion before the end of this year. Grab first announced a $1 billion investment from Toyota in June and that was doubled to $2 billion when a range of institutional backers joined. Those include OppenheimerFunds, Ping An Capital, Mirae Asset-Naver Asia Growth Fund, Lightspeed Venture Partners and Macquarie Capital, and today Grab disclosed two others: Goldman Sachs Investment Partners and Citi Ventures.

In total, these additions take that Series H round to $2.7 billion so far, Grab said. That means that Grab, which is valued at over $11 billion, has now raised more than $6 billion from investors including SoftBank and China’s Didi. That’s a figure that extends its record for a startup in Southeast Asia. Grab claims 125 million downloads across its eight markets in Southeast Asia and over 2.5 billion rides completed to date, up from two billion in July.

Like Toyota, Microsoft and travel giant Booking — which was formerly known as Priceline — Hyundai’s involvement includes a fairly hefty strategic portion: electric vehicles.

Grab said that it will work with the Korea firm introduce a series of EV pilots in Southeast Asia that’ll feature Hyundai and Hyundai-owned Kia vehicles. The companies began working on the rollout of Hyundai’s IONIQ vehicle in Singapore earlier this year and now they will add Kia EVs and explore opportunities beyond Singapore.

(Right to left) Euisun Chung, Executive Vice Chairman of Hyundai Motor Group, and Anthony Tan, Grab CEO, mark the new $250 million investment deal [Image via Bloomberg New Economy Forum]

Grab has an EV fleet in Singapore — size undisclosed — and it is working with Singapore Power to roll out a network of charging hubs and packages for Grab EV drivers as it expands that EV presence in the country. But this Hyundai partnership would represent its first EV foray into other markets in Southeast Asia, which has a cumulative population of more than 600 million consumers, although it didn’t name which markets or give a timeframe.

As in Singapore, Grab said its EV strategy will include engaging governments and “infrastructure players” to set up the right conditions for EVs, such as charging networks, maintenance packages for drivers and general research into how EVs perform in more humid environments.

Beyond the EV plans, Grab’s Series H is being put aside for a number of ventures which include its push to become an all-in-one ‘super app’ that goes beyond transportation to cover food deliveries, services on-demand, payments and fintech services, and more. There’s also likely an allocation for competition because, although Grab consumed Uber’s local business in the region, Indonesia-based rival Go-Jek is expanding in the region.

Go-Jek, which is aiming to raise $2 billion in its latest funding round according to sources, has entered Vietnam, is in the process of launching in Thailand and has just begun recruiting drivers for a Singapore rollout. That means Grab needs to keep a substantial amount of powder dry in case of the (likely) event that its battle with Go-Jek descends into a discount war, as was often the case during its rivalry with Uber.

That explains why it is raising an enormous $3 billion round despite having already removed Uber from the region via the buyout deal, which saw the U.S. ride-hailing giant take a 27.5 percent stake in Grab.

That deal, by the way, didn’t really go as planned. Not only was Grab over ambitious on the logistics, including plans to consume most of Uber’s 500 staff, but it misread the public reaction and incurred the wrath of regulators. Singapore’s consumer watchdog hit Uber and Grab with a total of $9.5 million in fines for the “anti-competitive” merger, while the pair got a lighter reprimand in the Philippines.

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The firm was attracted by Ezra’s 50 percent gross margin on subscriptions that could get even higher at lower subscription prices once its AI is approved. “We’re not losing money every sale” Gal tells me. And while $999 might sound steep, he says a prostate MRI will cost you $1500 if you book it yourself. With 30 million men in the US alone at risk of prostate cancer, there’s urgent need for Ezra to fulfill its mission of “making MRI-based cancer screening affordable to everyone.” Ezra’s Super Hero Origin Gal has one of those startup founder super hero origin stories that gives him the grit necessary to see the problem through. “I developed hundreds of moles as a child that put me at very high risk of melanoma. Every year I’ve had to check for abnormalities and do a couple of biopsies” he candidly revealed. “I’ve been acutely aware of the importance of cancer screening since a young age.” Ezra co-founder and CeO Emi Gal After studying computer science and applied math in his home country of Romania, he built an adtech company at age 20 and sold it at 30. While working with terminally ill cancer patient charity Hospices Of Hope, he seized on the need for better cancer screenings and began his research about different methods. “The more scientists I spoke to, the more convinced I became to build a new screening modality” he recalls. Typically, prostate cancer screenings involve a blood test for prostate-specific antigen, with an needle-through-the-rectum biopsy done if PSA levels are elevated. But PSA levels can be inaccurate, triggering painful and unnecessary biopsies. Gal discovered a recent study by a leading urologist that looked at 500 patients with some diagnosed the traditional way, and some with an MRI that when cancer is detected is then used to guide a biopsy. The latter method identified 18 percent more cases of cancer while reducing unnecessary biopsies and the associated side effects by 27 percent, the study found. MRIs could work. So Ezra conducted its own investigation to see if AI could perform as well as a radiologist. It had three experts mark up a data set from the National Institute Of Health and trained its AI on the data set through the work of Gal’s co-founder Diego Canto, a PhD in deep learning applied to MRI. They found the AI was 90 accurate at agreeing with the experts on a new data set. Now an FDA regulatory expert on the team is trying to get the AI approved to assist radiologists to lower Ezra’s labor costs. 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It will also have to find the right balance of margins and affordability that insurers will tolerate. “We want to focus on building a data set that proves [MRIs] are more accurate, less painful, and faster than that the standard of care” Gal concludes. If it can institute MRIs as the new standard for prostate screenings, Ezra will be on its way to offering a single painless test that could spot cancer early enough that it can be beaten. Cancer will kill 9.6 million people this year. It doesn’t have to be that way.

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