Grab announced it would be acquiring a controlling 60% stake in Atome Financial for $1.49 billion in cash, including $260 million in primary growth capital.
- The proposed acquisition will combine Atome Financial’s digital lending business with Grab’s existing financial services operations.
- Grab has agreed to purchase the remaining 40% of Atome Financial approximately two years after the initial transaction closes.
- The company raised its overall 2028 Adjusted EBITDA target to $1.7 billion and now expects annual revenue growth of more than 30% between 2025 and 2028.
Grab Holdings (GRAB) shares moved higher in early morning trade on Monday after the company announced a $1.49 billion deal with Singapore’s Atome Financial and said the boost could push its portfolio to over $6 billion in another two years.
Grab said it will acquire a controlling 60% stake in Atome Financial, the digital financial services platform of Advance Intelligence Group, in cash. The transaction includes $260 million in primary growth capital and is expected to close by the third quarter (Q3) of 2027.
The acquisition will combine Atome Financial’s consumer lending business with Grab’s financial services operations, giving the ride-hailing and delivery company a larger presence in Southeast Asia’s consumer credit market.
GRAB stock gained as much as 1.3% in pre-market trade amid broader market weakness. The SPDR S&P 500 ETF (SPY) shed 0.18%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.25%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) fell 0.11%.
On Stocktwits, retail sentiment around GRAB dipped to ‘bullish’ from ‘extremely bullish’ territory over the past day, accompanied by chatter at ‘high’ levels.
Grab Plans to Buy Remaining 40%
Grab has separately agreed to acquire the remaining 40% of Atome Financial approximately two years after the first transaction closes.
Unlike the initial deal, the second phase will be priced based on Atome Financial’s actual financial performance. The valuation will use a combination of Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) and revenue multiples, with an equity valuation floor of $2 billion and a cap of $4.5 billion.
Grab Targets $6 Billion-Plus Loan Portfolio
The combined business is expected to have a gross loan portfolio of more than $6 billion by 2028, according to Grab. Atome Financial currently has a roughly $1 billion gross loan portfolio and operates across Singapore, Malaysia, the Philippines, Indonesia and Thailand.
Grab said the deal will allow it to scale its lending business faster and more efficiently than building a comparable platform internally. Atome Financial offers Buy Now, Pay Later services, consumer cash loans, BNPL cards and other digital lending products.
The company expects the expanded Financial Services segment to generate $500 million in Adjusted EBITDA by 2028.
Grab also raised its broader 2028 targets following the transaction. The company now expects $1.7 billion in Group Adjusted EBITDA by 2028, up from its previous target, while forecasting revenue growth of more than 30% annually from 2025 through 2028.
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