Grab Plans $1.25b Fundraising for M&A After GoTo Merger Rejection
Funding | Jun 10, 2025 | EIN
Grab has announced its plan to raise $1.25 billion through the issuance of convertible senior notes to bolster its financial capacity for potential mergers and acquisitions. This announcement came shortly after rumors of a potential merger with GoTo were denied by both parties. The funds aim to enhance Grab's strategic flexibility, although the company emphasizes maintaining high standards for any transaction. Grab has a history of growth through acquisitions, including recent stakes in platforms such as Nham24 and Everrise. Simultaneously, it plans to proceed with share buybacks under an existing repurchase program.
Sectors
- Transportation and Logistics
- Financial Services
- E-commerce and Retail
- Private Equity and Venture Capital
Geography
- Southeast Asia – Grab is a major player in Southeast Asia, operating across various countries in this region and targeting acquisitions there.
- Indonesia – Indonesia was central to merger rumors regarding GoTo, a major regional tech company also based there.
Industry
- Transportation and Logistics – Grab is primarily known as a major player in the transportation and logistics industry through its ride-hailing services.
- Financial Services – Grab, through GXS Bank, is involved in financial services, including SME lending, which is relevant given the acquisition of Validus Capital.
- E-commerce and Retail – Grab's investments in Nham24 and Everrise demonstrate its involvement in the e-commerce and retail sectors.
- Private Equity and Venture Capital – The issuance of convertible senior notes is a financing strategy commonly used in private equity and venture capital.
Financials
- $1.25 billion – The amount Grab plans to raise through the issuance of convertible senior notes to fund acquisitions.
- $274 million – Remaining balance available in Grab's ongoing $500 million share repurchase program as of March.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Grab Holdings | Target Company | Company | A leading superapp in Southeast Asia known for its diversified services including ride-hailing, food delivery, and payments. |
| GoTo Gojek Tokopedia Tbk | Potential Merger Partner | Company | An Indonesian technology company, created from the merger of Gojek and Tokopedia, offering services in ride-hailing and e-commerce. |
| Danantara | Potential Investor | Government | Indonesia’s sovereign wealth fund speculated to have an interest in a stake in a potential Grab-GoTo deal. |