Tech giant Microsoft said late Monday that it will invest an undisclosed sum into Singapore-based ride-hailing company Grab, as part of a strategic partnership.
The two companies will also collaborate on technology projects in areas such as big data and artificial intelligence, while Grab will now use a number of Microsoft products, including the Azure cloud computing service, according to a joint statement.
"We're fascinated with the companies that are emerging from Southeast Asia," Peggy Johnson, executive vice president at Microsoft, told CNBC in an interview. "It's been amazing to watch what they have done with technology, in the way that they've applied it to solving problems for their customers."
Microsoft and Grab declined to disclose the amount of the strategic investment.
So far this year, Grab has already raised $2 billion from Toyota and institutional investors. It had raised about $6 billion in total funds as of Aug. 2, 2018, and is valued at $11 billion, according to CB Insights.
On Friday, Reuters reported that Japan's SoftBank was closing in on a deal to invest about $500 million in Grab as part of the ride-hailing company's latest funding round that is likely to be completed in a few weeks.
Grab President Ming Maa declined to comment on ongoing investment discussions, but he told CNBC that the company was on track to raise about $3 billion in funds by the end of the year. He also declined to give an estimate of how big the investment from Microsoft is, compared with the funds raised from other backers throughout the year.