GRAB, a ride-hailing platform in Southeast Asia, has obtained US$700 million in debt facilities, the largest ever single debt financing raised by a Southeast Asian start-up, which will be used to expand its car rental fleet in Singapore and Indonesia.

Grab has also deepened its partnership with SMRT, a Singaporean transport provider, to build the largest and most advanced fleet in Singapore.

Grab says that these two initiatives put it on track to have the largest car rental fleet in Southeast Asia by Q4 2018, addressing rapid growth in demand for rental cars from drivers on the Grab platform around the region. Grab’s existing car rental business is already a key drive of growth of the company’s driver network in Southeast Asia, where car ownership is relatively low.

With the debt facilities announced today, Grab will make more cars available for rental, provide more favourable rental terms and services for driver partners, and increase the supply of vehicles on the road – which in turn will make rides faster and more affordable for passengers.

In July, Grab announced that its current equity financing round, led by SoftBank and Didi Chuxing, is expected to raise a total of US$2.5 billion, making it the largest ever single financing round in Southeast Asia