Grab Forms Endowment Funds for Partners, Preparing IDR 4 Trillion
Decacorn Singapore, Grab Holdings plans to establish an endowment fund for the GrabForGood Fund. This on-demand service provider company has prepared an initial fund of US$ 275 million or around IDR 4 trillion. A total of US$ 50 million (IDR 726.8 billion) was in cash and US$ 200 million (IDR 2.9 trillion) in the form of an estimated share value for Grab.
Grab Group co-founder and CEO Anthony Tan, Co-founder Tan Hooi Ling, and Grab President Ming Maa are committed to contributing their personal funds totaling US$ 25 million (IDR 363.4 billion) in shares.
So the initial funding reached US$ 275 million. “GrabForGood funds will be the main pillars of our efforts to improve the welfare and quality of life of partners and the wider community,” said Anthony in a press release, Thursday (8/4).
The company targets driver-partners, deliveries, merchants, and the general public of Southeast Asia. This fund aims to support various programs that have long-term social and environmental impacts, including aspects such as education, financial assistance for the community, and environmental issues.
A ‘GrabForGood Fund Advisory Board’ will be established to provide representation for Grab partners and the people of Southeast Asia. They provide feedback and recommendations regarding the use of these funds.
“GrabForGood funds will begin to be used to meet the urgent need for the Covid-19 vaccine in areas that are difficult to obtain,” he said.
Partner Vaccination Subsidized by the Company
Grab allocated more than US$ 20 million in cash to fully subsidize its vaccination and administrative costs for drivers and delivery partners who are eligible and not included in the target recipient of vaccines from the country.
This is a follow-up to the results of a survey in February, which showed that 92% of Grab users are worried about the coronavirus. The Decacorn seeks to gain access to vaccines. Then, it will run a vaccine center to vaccinate eligible partners in each region.
Anthony explained that the GrabForGood Fund was designed for the long term. After achieving the target, this program will be used to support other initiatives. Only he did not specify the value.
Meanwhile, the area to be supported is divided into two. First, for partners, it includes three things, namely GrabInsure subsidies, educational scholarships, and financial assistance for people with disabilities. Second, for the general public, there are also three that have been prepared.
The three are digital and financial literacy programs, climate change resilience, and natural disaster relief. Grab ensures that the use of the GrabForGood Fund follows governance and regulations based on local laws, regulations and compliance requirements in each region.
“Over time, we plan to introduce a number of programs that can lay the foundation for economic and social progress, and give more people access to opportunities to improve and develop their lives,” he said.
Ready for IPO on Wall Street via Altimeter Capital
Grab Holdings Inc, one of the most valuable startups in Southeast Asia, is ready to merge with one of the special purpose acquisition companies (SPAC), Altimeter Capital, to be listed on the US Wall Street stock exchange.
Three Financial Times sources reported that this agreement will push the valuation of the technology company supported by SoftBank to reach around US$ 35 billion or the equivalent of IDR 490 trillion (exchange rate of IDR 14,000 / US$).
The three sources stated that Singapore-based Grab, which offers online and financial transportation services, could complete the agreement to register (listing) in New York through Altimeter Capital as soon as this week.
This business merger will be carried out with one of the two US investment companies owned by Altimeter, Altimeter Growth (Altimeter Growth 1), and will take place after the Grab board approved the agreement at the beginning of last month.
The agreement has actually been held as the first stage for this unicorn in Southeast Asia who is preparing to go public this year. Founded in 2012, Grab offers access to a regional consumer market of more than 655 million people in various countries including Indonesia, Thailand, and Vietnam.