The Japanese company Toyota announced on Wednesday 13th June that it will pump $1 billion into Singapore-based ride hailing firm Grab, the biggest ever investment by a traditional automaker in this sector, as reported by Reuters.
The new funding values Grab at just over $10 billion, according to someone familiar with the company.
Grab made headlines in March by buying out Uber's business in Southeast Asia in a multibillion-dollar deal.
Under the agreement with Toyota, one of the Japanese company's executives will join Grab's board of directors, and a Toyota employee will be seconded to the startup full-time as an executive officer.
Toyota’s investment will allow Grab to further expand its range of online to offline services, such as food delivery and digital payments.
South Korea’s Hyundai Motor Co and Japan’s Honda Motor Co Ltd have previously invested in Grab, which said it generated over $1 billion.
The company’s app has been downloaded on to over 100 million mobile devices and the firm logs over 6 million rides per day.