Alibaba in talks to invest USD3 billion in Grab

grab

Chinese conglomerate, Alibaba is in talks to invest US3 billion into Southeast Asia’s biggest ride-hailing firm Grab.

The e-commerce giant, a sole investor in the round, will spend a portion of the funds to acquire some of the Grab stock held by Uber Technologies, Bloomberg reports.

In April, Uber said it expects an impairment charge of up to USD2.2 billion, adding that the charge would be against the carrying value of some of the company’s minority equity investments, due to the impact of the pandemic on the estimated value of those entities.

SoftBank is reportedly at the center of the discussions, according to Bloomberg. The Japanese investment giant has used its position as a major shareholder to push Uber to unload stakes in Grab, Didi Chuxing of China and Russia’s Yandex.

SoftBank is also pushing Grab to make peace with Gojek. Gojek, which is reportedly valued at USD10 billion and has raised capital from both Facebook and PayPal Holdings, is Grab’s arch-rival. The two also compete in food delivery and financial services.