China's online ride-hailing platform Didi Chuxing, along with Japan's SoftBank Group, will invest as much as $2 billion in Singapore-based Grab Taxi Holding Pte to help it compete with its biggest rival Unber, the Wall Street Journal reported over the weekend.
The deal is likely to be closed within the next few weeks, pushing the 5-year-old start-up's market value to more than $5 billion, said the report, citing sources familiar with the matter.
The reported funding comes amid Grab's efforts to transform itself into a consumer technology company that offers loans and electronic money transfer, Reuters reported.
The three companies - Didi, Grab and SoftBank - had not responded to media request for comment as of press time, according to the Reuters' report.
Analysts said that the move also reflects Didi's eagerness to achieve a deep cultivation of the Southeast Asian market as part of its strategy to expand globally.
In August 2015, Didi, along with other investors including U.S.-based hedge fund Coatue Management and China Investment Corp, invested $350 million in Grab, the Beijing News reported.
Founded in 2012, Grab has operations in 55 cities across seven Southeast Asian countries. The platform is more welcome in most Southeastern Asian markets than Uber because it can provide more services, according to media reports.
