Grab Holdings is in talks to raise as much as US$2 billion in short-term financing to fund a potential acquisition of Indonesian tech rival GoTo Group, Bloomberg reported.
The Singapore-based ride-hailing and delivery platform is engaging with banks on a bridge loan with a tenor of about 12 months, according to people familiar with the matter.
The discussions remain at an early stage, and both the loan structure and acquisition terms are subject to change.
The fundraising effort signals that Grab is making headway in due diligence and evaluating the structure of a deal that could be valued at over US$7 billion.
A GoTo spokesperson declined to comment, while Grab has yet to respond to inquiries.
If completed, the takeover would be one of the most significant tech deals in Southeast Asia in recent years.
Grab is also considering a future bond or equity offering following the bridge loan, though such financing remains contingent on the successful completion of the GoTo acquisition, one of the sources said.
Last week, the Competition and Consumer Commission of Singapore said it has not received any formal notification from ride-hailing and delivery firms Grab and GoTo regarding the potential merger.
