China Investment Corp is a sovereign wealth fund that made an investment in Chinese taxi app firm Didi Kuaidi earlier this month.
Singapore-based taxi booking app company GrabTaxi has secured a $400 million investment round, according to a source speaking to The Wall Street Journal. With this deal in place, GrabTaxi’s valuation will rise to somewhere between $1.6 billion and $1.8 billion, said the same source.
The new injection of funds will come from China Investment Corporation (CIC), a $740 billion sovereign wealth fund and other investors. This is not the first time the fund has made an investment in a taxi booking app company. Earlier this month, Chinese taxi booking app company Didi Kuaidi Joint Co was reported to have received an undisclosed amount from CIC and other participating investors.
Many view Didi Kuaidi, which is the result of a merger between two huge taxi booking app firms Didi Dache and Kuaidi Dache, as the only company able to compete with Uber in China.
As for GrabTaxi, it is enjoying its continued dominance over Southeast Asia. The company has drivers in Singapore, Malaysia, Thailand, the Philippines, Vietnam and Indonesia. Its biggest competitor is Uber, which seems to be running into legal issues everywhere it goes, and booking apps developed by taxi app companies. It has also expanded into providing users with the GrabCar service, which includes two categories: GrabCar (economy) and GrabCar+ (premium), and GrabBike service that serves countries like Thailand and Indonesia where motorcycle taxi rides are common.
But rest is not around the corner. With a grand war-chest of external funding from SoftBank, Tiger Global Management, Vertex Venture Holding, CIC and other investors, GrabTaxi is only its way to capture more cities in Southeast Asia and beyond.
This post was originally published on e27.
Featured Image Credit: PR screenshot/ GrabTaxi