Grab Launches Grab Ventures with IDR3 Trillion (US$250 Million) Commitment for Indonesian Startups
Grab, Southeast Asia’s leading O2O (online-to-offline) mobile platform, today launched Grab Ventures, the company’s innovation arm, in Indonesia with plans to invest IDR3 trillion (US$250 million) in Indonesian startups.
- Grab Ventures to enable Indonesian startups to expand across Southeast Asia
- Latest initiative of ‘Grab 4 Indonesia’ 2020 Master Plan
- Milestone underlines Grab’s position as Indonesia’s leading tech startup with 65% ride-hailing market share
Jakarta, 29 August 2018 – Grab, Southeast Asia’s leading O2O (online-to-offline) mobile platform, today launched Grab Ventures, the company’s innovation arm, in Indonesia with plans to invest IDR3 trillion (US$250 million) in Indonesian startups. Grab Ventures aims to help select Indonesian startups scale up nationally and across Southeast Asia, by providing a unique blend of Southeast Asian market access, mentorship, technology capabilities and strategic investments.
Grab Ventures is the latest initiative of the ‘Grab 4 Indonesia’ 2020 Master Plan to support Indonesia’s goal to be Southeast Asia’s largest digital economy by 2020.
Grab Ventures also announced Grab Ventures Velocity, their programme to specifically support startups in scaling stage. The programme is in association with the Ministry of Communication and Information Technology (Kominfo), Creative Economy Agency (BEKRAF), and partners include Amazon Web Services (AWS) and MDI Ventures, Telkom Indonesia’s corporate venture capital initiative.
H.E. Rudiantara, Minister of Communication and Information Technology, said, “With the rapid growth of mobile connectivity and smartphone ownership, Indonesia can, and should, be the biggest digital economy in the region. Indonesia has been the home of some notable tech unicorns, and we believe more regional or global tech leaders can emerge from Indonesia. We are pioneering IDEA Hub, a digital economy platform to accelerate economic access to G20 countries, another initiative to provide learning materials and best practices for Indonesia’s digital companies. On the other hand, Indonesian digital companies need to dream big like Grab, and thus I commend its commitment to mentoring and helping local startups to scale nationally and regionally.”
E. Triawan Munaf, Head of Creative Economy Agency (Badan Ekonomi Kreatif – BEKRAF) stated, “The Indonesian government is very committed to creating a solid ecosystem to help startups be successful. BEKRAF is committed to be the bridge between startups, investors, mentors and learning materials, and excited to have Grab on board with their full suite of expertise and network.”
Ridzki Kramadibrata, Managing Director, Grab Indonesia said, “Since we launched Grab 4 Indonesia in 2017, our belief that Grab does well if Indonesia does well has strongly come to life. This is why we continue to invest in Indonesia. Since last year, we’ve created hundreds of tech jobs and empowered more than 5 million micro-entrepreneurs. At the same time, Grab has established itself as the leading startup in Indonesia. In ride-hailing alone, we have 65% market share today. We now want to help other startups dream bigger and become not just Indonesia’s next unicorn but also one of Southeast Asia’s tech leaders.”
Grab Ventures in Indonesia
The launch of Grab Ventures in Indonesia follows its regional launch in June in Singapore. It aims to discover and grow Southeast Asia’s next generation of technology leaders and promote innovation and digitisation. Grab will partner or invest in startups who want to solve mobility, food, logistics, fintech and other O2O challenges.
Grab Ventures will work with startups at multiple stages of growth in two ways:
- Strategic partnerships and integration with Grab’s services for mature startups.
For example, Grab invested in Kudo and shared Grab’s capabilities and expertise. Kudo’s agent network has grown 3x since.
- Grab Ventures Velocity for startups that are still scaling up.
This is a 16-week programme to help participating companies scale up faster through access to assets, resources, capabilities and networks of Grab and its programme partners.
The first cohort of Grab Ventures Velocity will go through the programme starting later this year. Interested startups can apply by 10 September through https://ventures.grab.com.
Grab Ventures Velocity is a scale-up programme that is widely supported throughout Indonesia’s and Southeast Asia’s technology ecosystem. AWS will provide benefits to selected startups through the AWS Activate Portfolio Plus package and also technical mentoring on platform security, scaling and best practices to Grab’s curated startup partners. MDI Ventures, which has operations in Singapore and Silicon Valley, will provide local expertise and access to their mentors networks.
The Grab Ventures Velocity scale-up programme complements BEKRAF and Kominfo’s efforts to create a supportive environment for early startups through initiatives like Go Digital Vision 2020 and Go Startup Indonesia.
Speaking at the launch of Grab Ventures in Indonesia, Ridzki Kramadibrata, Managing Director, Grab Indonesia, commented, “We have proven ourselves as a partner of choice to other startups with our excellent track record to date. Since our acquisition of Kudo, it has grown its agent network from 400,000 to 1.4 million registered agents. OVO, our strategic payments partner has also rapidly grown with the help of Grab’s user base and became the largest digital wallet in Indonesia by Total Payments Volume (TPV).”
Next phase of ‘Grab 4 Indonesia’ 2020 Master Plan
First announced in February 2017, Grab committed IDR10 trillion (US$700 million) to the ‘Grab 4 Indonesia’ 2020 Master Plan to provide all Indonesians an opportunity to move into the digital economy. The programme creates more jobs, upskills the Indonesian workforce and grows the technology sector.
Grab Ventures is the latest ‘Grab 4 Indonesia’ initiative to support the growth of the tech startup ecosystem in the country. Grab will invest an additional IDR3 trillion (US$250 million) into Indonesia in the next 3 years through Grab Ventures’ Velocity scale-up programme.
This is another milestone in a year in which Grab has built out its lead in Indonesia, its largest market. Grab provides online-to-offline services to more Indonesians, having expanded from 12 cities in January 2017 to 137 cities today, covering Sabang to Merauke. Grab is Indonesia’s most preferred ride-hailing company with 65% market share. Grab’s singular focus on providing safer and more affordable on-demand transport services has served as the foundation of its everyday app strategy.
Grab started expanding its GrabFood (food delivery) and GrabExpress (parcel delivery) services in the beginning of 2018, and consumers have embraced Grab’s newer services. GrabFood expanded to over 20 new cities this year and is now in 30 cities. Gross Merchandise Value (GMV) in Indonesia almost quadrupled in the first half of 2018, and GrabFood is expected to be the chosen food delivery service in Indonesia by the end of 2018. GrabExpress GMV in Indonesia also almost tripled in the first half of 2018.
Grab is one of the most frequently used O2O mobile platforms in Southeast Asia, providing the everyday services that matter most to consumers. Commute, eat, deliver, shop – and pay with one e-wallet. Grab believes that every Southeast Asian should benefit from the digital economy, and the company provides access to safe and affordable transport, food and package delivery, mobile payments and financial services. Grab currently offers services in Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia. For more information, please visit www.grab.com.
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