(July 24): Grab raised US$2 billion ($2.7 billion) from Didi Chuxing and SoftBank Group Corp. in the largest–ever venture fundraising in Southeast Asia, joining forces with two companies instrumental in driving Uber Technologies Inc. out of China.

The deal cements an alliance between SoftBank, Didi and Grab, which competes against Uber in markets from Malaysia to Thailand. The Singapore-based ride hailing company said Monday it expects to close another US$500 million from unspecified new and existing backers. That would take its valuation north of US$6 billion, making it the most valuable startup in Southeast Asia, a person familiar with the matter said.

The record financing follows Uber’s retreat from Russia and China, massive markets where Uber spent billions but ultimately capitulated to well-financed and savvy local rivals. In Southeast Asia, it’s waging a costly war against not just Grab but also Go-Jek, which is holding its own on its home turf of Indonesia. The local players have thus far shown greater initiative in terms of launching services such as digital payments, said Ajay Sunder, vice president of digital transformation at Frost & Sullivan in Singapore.

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