GXS Bank Receives Continued Backing from Grab with US$109 Million Injection
by Fintech News Singapore January 15, 2024Southeast Asian superapp Grab funneled an additional S$145.10 million (approximately US$109 million) into GXS Bank. This move was made through its wholly-owned subsidiary As-DB Holdings Pte Ltd., according to regulatory filings obtained by DealStreetAsia.
GXS Bank, a joint venture between Grab and the Singapore-listed telecom giant Singtel, was one of the first digital banks in Singapore to launch its offerings in September 2022.
This recent capital infusion is part of a series of investments by Grab into GXS Bank. Previously, in July last year, Grab had invested S$137 million, followed by a S$75.8 million injection in April.
Looking ahead, the ACRA filings revealed plans for further investments. Grab and Singtel have earmarked an additional S$229.5 million for injection into the bank in the third quarter of 2024.
Additionally, GXS Bank intends to subscribe to more shares in GX Bank Malaysia, worth S$55 million, pending approval from the Monetary Authority of Singapore (MAS).
In Malaysia, GX Bank was the first out of the five digital bank licensees to commence operations where the digital bank has already onboarded over 100,000 users since its launch on 30 November 2023.
In addition to its investments in Singapore, Grab, along with Singtel, has extended its digital banking ventures to Indonesia. They are minority investors in Bank Fama, backed also by the Emtek Group.
Moreover, Grab has also made strategic investments in another Indonesian digital lender, Bank Allo, through a rights issue. This investment saw participation from other major players like Bukalapak, the Salim Group, CT Corp, and the used car marketplace Carro.
Featured image: Edited from Unsplash
