Japan’s MUFG to invest up to 80 bil yen in Grab
TOKYO, NNA - Japan’s Mitsubishi UFJ Financial Group Inc. will invest up to 80 billion yen ($718 million) in Singapore's ride-hailing firm Grab Holdings Inc. to offer loans and insurance overseas through smartphone apps.
The two companies anticipate reaching an agreement and announcing the deal soon.
MUFG, which is expected to take a less than a 10 percent stake in the projected joint business, will assess the repayment capabilities of potential customers who use loans or buy insurance offered through Grab.
MUFG will complete its investment in Grab by midyear, the Nikkei, a Japanese financial daily, reported on Thursday. In return for its investment, MUFG will receive help in developing a "super app" through which it will be able to offer customers a variety of daily services, the report added.
A spokesman at MUFG declined to comment on the report.
The Japanese financial group will seek to offer services to potential customers “who do not have bank accounts,” a source close to the matter told NNA on Thursday.
The Japanese financial group has expanded into Asian markets through a series of investments in such countries as Vietnam, Thailand, the Philippines, and Indonesia over the past several years.
Japan’s Toyota Motor Corp. and Softbank Group Corp. have already invested in Grab.