Prime Highlights-
- Grab’s CFO said the phased acquisition structure was meant to de-risk the deal from a capital allocation perspective.
- Oey said Atome would elevate Grab’s financial services capabilities and support a raised 2028 outlook.
Key Facts-
- Grab is a Southeast Asian ride-hailing, delivery and financial services company listed on Nasdaq.
- Grab expects its financial services segment to generate $500 million in adjusted EBITDA by 2028.
Background-
Ride-hailing and delivery giant Grab is acquiring Singapore-based buy-now, pay-later platform Atome Financial to strengthen its position in consumer lending. The company will initially buy a 60% controlling stake for $1.49 billion in cash, with plans to acquire the remaining 40% about two years after the deal closes.
Grab’s Chief Financial Officer Peter Oey said the two-stage structure was designed to reduce risk from a capital allocation standpoint. He said the acquisition would strengthen Grab’s overall financial services capabilities and would be accretive to the business, contributing to a raised 2028 outlook. Grab shares fell 3.64% on Nasdaq after the announcement.
Atome partners with brands in travel, beauty and e-commerce, giving Grab entry into sectors where it currently has limited presence, Oey noted. The deal is expected to close next year, with Atome’s contribution becoming more significant toward the latter part of that year and into 2028. Grab expects its financial services segment to generate $500 million in adjusted EBITDA by 2028.
Grab plans to retain Atome’s existing management team, and the gap between the two acquisition stages will allow both companies to explore potential synergies. Oey also pointed to micro-investing as a future growth opportunity in Southeast Asia, adding that expanding access to fair credit in the region is an area where Grab hopes to collaborate with regulators.