AKIPRESS.COM - Japanese telecommunications major Softbank has invested several millions of dollars in GrabTaxi, considered a rival to Uber in Southeast Asia.

Softbank's internet and media arm has invested $250million in the fast-growing taxi hailing service, making it the largest investor in the mobile app.

Following the investment, GrabTaxi is expected to have a valuation of more than $1bn.

Founded in Malaysia in 2012, GrabTaxi has recently moved its headquarters to Singapore. It operates in 17 cities across six Southeast Asian countries – Malaysia, Philippines, Thailand, Singapore, Vietnam and Indonesia.

It claims to have the largest network in Southeast Asia and more than 500,000 active users and 2.5 million mobile app downloads till date.

Including Softbank's investment, GrabTaxi has raised $340m over the last year. Other investors in the firm include Vertex Venture Holdings, a wholly-owned subsidiary of Temasek, the Singapore government's investment arm, and US investor Tiger Global Management.

The investment would allow GrabTaxi to effectively compete with other taxi apps, including Uber, which is rapidly expanding its services in Asia.