Grab is pulling the plug on its retail investment products and services in Singapore, after a review of the GrabInvest business concluded that it will “not be commercially viable” in the long run.
Customers were notified via email on Monday (Sep 25) that Grab was discontinuing its two investment products – AutoInvest and Earn+ – and will not be accepting new deposits.
Customers have until Oct 13 to withdraw their money from these products. After which, accounts will be closed, and no further transactions will be permitted.
Singapore-headquartered Grab made its move into the retail wealth management space in 2020 after acquiring Bento Invest, a Singapore-based robo-advisory start-up.
AutoInvest, which allows users to invest sums as low as S$1 (US$0.70) with each eligible transaction, was its first investment product. Investments go into money market and short-term fixed-income mutual funds, offering returns of up to 1.18 per cent per annum.
Grab rolled out its second product Earn+ in May last year, alongside the rebranding of its financial arm. Earn+ was billed as a “low-risk” way for users to invest in institutional funds and earn higher returns of 2 to 2.5 percent per annum on their idle cash.
GrabInvest and its micro-investment offerings are only available in Singapore.