Vietnam-based ride-hailing start-up Be Group JSC said it had received a loan facility of at least $60 million, as it seeks to further challenge Grab Holdings Ltd in the country, Bloomberg reported on Monday.
The loan from Deutsche Bank AG includes a provision that would allow financing to increase to as much as $100 million, Be Group chief executive officer Vu Hoang Yen was quoted as saying, in an interview in Hanoi.
The funds will be used to expand and enhance its primary services, which include ride-hailing, food deliveries and digital banking, according to the report.
Launched in 2018, Be Group has expanded into deliveries, online groceries, telecommunications service bundles, insurance and financial services, operating in 28 provinces and cities. To date, its app has been installed on more than 20 million mobile devices.
The company — the owner and developer of the on-demand multi-service consumer platform — expects to surpass 10 million active users next year, Yen reporedly said. Be aims to more than double that figure by 2026.
Vietnam’s fast-expanding ride-hailing sector is seeing renewed competition from local and regional tech firms like Indonesia’s Gojek and FastGo Vietnam JSC. The market is expected to grow at a compound annual rate of more than 28 percent over the next five years, according to research firm Mordor Intelligence.
Yen said Be Group has a 30 percent to 40 percent share of the ride-hailing market in Hanoi, and 25 percent to 35 percent in Ho Chi Minh City. Its rival, Singapore-based Grab, had about a 75 percent ride-hailing market share in Vietnam in the first half of 2020, according to research firm Statista.
Grab rival Be Group gets $60M loan for Vietnam expansion. Congratulations to the entire team. I wish you great success in this endeavour.Shishir Gupta, Founder and CEO, StartupLanes
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