Grab, Bets $1.49 Billion on Southeast Asian Fintech Giant..."Full Acquisition with Cash Only"

▲ Grab (GRAB) / AI Generated Image

Grab Holdings (GRAB) has invested $1.49 billion to dominate the Southeast Asian fintech market.

According to Benzinga on September 16 (local time), Grab has agreed to acquire a 60% stake in Atome Financial for $1.49 billion in cash. The transaction is expected to be finalized by the third quarter of 2027, subject to regulatory approvals. The acquisition amount includes $260 million in growth capital.

Atome Financial operates in Singapore, Malaysia, the Philippines, Indonesia, and Thailand. It has accumulated 25 million users. It provides buy-now-pay-later, cash loans, cards, and digital lending services. It partners with over 30,000 brands and has a total loan portfolio of approximately $1 billion.

Grab plans to combine Atome Financial's AI-based lending infrastructure with its own ecosystem data. The strategy is to strengthen loan assessments and expand consumer credit supply. Grab also agreed to acquire the remaining 40% stake approximately two years after the initial transaction. The additional acquisition price will be linked to Atome Financial's performance, with an enterprise value set between a minimum of $2 billion and a maximum of $4.5 billion.

Along with the major acquisition, Grab also raised its financial targets for 2028. Grab projected an adjusted EBITDA of $1.7 billion. Group revenue is expected to grow by more than 30% annually from 2025 to 2028. The financial services segment, including Atome Financial, aims for an adjusted EBITDA of $500 million and a total loan portfolio of over $6 billion by 2028.

The acquisition will be fully funded by existing cash reserves. Grab stated that this transaction will not affect its share repurchase program. As of June 30, total cash liquidity increased to $7.4 billion from $6.9 billion at the end of the previous quarter. Net cash liquidity also rose from $5 billion to $5.4 billion during the same period.

[Key Article Summary]

-Grab will acquire a 60% stake in Atome Financial for $1.49 billion in cash.

-The remaining 40% will be acquired approximately two years after the initial transaction, with an enterprise value set at a maximum of $4.5 billion.

-Along with the acquisition announcement, Grab set its adjusted EBITDA target for 2028 at $1.7 billion.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*