GXS Bank, a digital bank in Singapore, has received an additional S$229.5 million (approximately US$169.4 million) funding from its parent companies Southeast Asian superapp Grab and telecom conglomerate Singtel, according to regulatory filings reported by DealStreetAsia.
Grab led the round, injecting around US$141.5 million through its subsidiary A5-DB Holdings Pte Ltd. This latest investment follows several previous capital injections by Grab, including a US$109 million infusion in January and additional investments last year.
The capital infusion comes as GXS Bank experienced a 59% increase in losses for the financial year ended 31 December 2023, despite a sixfold increase in net interest income.
The bank’s loss for the year rose to S$208.2 million in 2023 from S$131.1 million in 2022.
Meanwhile, Grab reported a 24% increase in revenue in the first quarter of 2024 reaching US$653 million, driven by growing on-demand gross merchandise value and a lower operating loss.
Launched in August 2022, GXS Bank has enhanced its savings account, now allowing deposits up to S$75,000 with interest rates of 2.68% per annum for Saving Pockets and 2.38% for the main account.
The account supports flexible savings with no minimum balance or lock-in period. Additionally, the bank launched the GXS FlexiLoan last year, which combines the features of a credit line and a personal installment loan.
This allows customers to make partial or full early repayments without penalties, benefit from interest savings, and make multiple drawdowns without repeated underwriting, offering flexibility in managing finances.
Featured image credit: Edited from Freepik
