GrabTaxi secured $90 million in funding over the past 12 months, powering ahead as the battle among Southeast Asia's taxi apps continues.
The Malaysian taxi-app provider announced its third and largest round of funding last week for $65 million, led by U.S. investment firm Tiger Global, following tranches of $15 million and $10 million earlier this year.
Taxi-app providers are racing to gain a foothold in this burgeoning market, as more consumers book taxis using smartphone apps.
"GrabTaxi has some legs," Shiv Putcha, associate director with IDC's Asia/Pacific Consumer Mobility and Social Consumer Research team told CNBC. GrabTaxi is present in 16 Asian cities.
"The additional funding will definitely boost their prospects in the short term. They will want to increase the number of cities they are present in and maybe they'll add another country or two as well," he added.
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Battle of the apps
There are many players in Southeast Asia's taxi-app market. Some target licensed drivers, while others connect customers to private cars, so not all apps compete directly.
Aside from GrabTaxi, other apps include EasyTaxi - from German tech incubator Rocket Internet - also available in 16 cities across Asia, Indonesia's Blue Bird and Vietnam's PingTaxi.
Investment will be paramount for these local players if they want to compete with the sector's big boys, IDC's Putcha told CNBC.