South Korean Retail Giant Shinsegae Invests In Singapore’s Grab

Signet Partners, the venture capital arm of South Korean retailer Shinsegae Group, has invested an undisclosed amount in the Singaporean super app Grab, The Korea Herald reported.

The venture capital division was launched in July and has financially backed multiple South Korean companies, including investments in the fashion tech startup Ably Corporation and lifestyle firm Homes.

“We will continue to discover and invest in promising startups at home and abroad as well as creating various opportunities to generate synergy with startups,” one official at Signet Partners told the news outlet.

Grab is often called a “super app” that offers multiple conveniences, including financial services, food delivery and ride-hailing. The platform has traction in eight countries — including Singapore, Indonesia, Vietnam and Thailand — and its mobile app was downloaded more than 14 million times.

Earlier this month, Grab closed a $2 billion, five-year term loan facility amid talks of a possible initial public offering (IPO). The loan facility was increased from an original principal amount of $750 million and is the biggest term loan B facility in the Asian tech sector. Grab said the loan facility will help it diversify its capital structure and increase liquidity.

Last Month, SoftBank-backed Grab announced it was working with Morgan Stanley and J.P. Morgan Chase to underwrite a possible $2 billion IPO. The news helped escalate Grab’s net revenue by 70 percent in 2020 with a valuation in excess of $14 billion.

Grab Co-Founder and Group CEO Anthony Tan said he is grateful for the support of investors that believe in the company’s mission of improving the lives of Southeast Asians. The pandemic negatively affected Grab’s ride-hailing business, but demand for its delivery services has surged.

The startup started exploring the possibility of an IPO after acquisition discussions with Indonesia’s Gojek fizzled.