Grab (GRAB) Investor update summary

Strategic rationale and transaction overview

• Announced acquisition of a 60% controlling stake in Atome Financial for $1.49 billion in cash, with completion expected by Q3 2027 and the remaining 40% to be acquired two years later at a performance-based valuation between $2 billion and $4.5 billion.

• Atome operates in five of six key Southeast Asian markets, providing immediate scale in consumer lending and complementing existing strengths in mobility, deliveries, and financial services.

• The deal structure ensures capital discipline, with future payments linked to Atome’s actual EBITDA and revenue performance, protecting shareholder interests.

• Atome’s management will continue to run the business during the earn-out period, ensuring operational continuity and alignment.

• The acquisition is fully funded from existing cash, maintaining a strong net cash buffer and ongoing share buybacks.

Financial services growth and market opportunity

• Financial services is the fastest-growing segment, targeting a gross loan book of over $3 billion by end-2026 and $6 billion by 2028.

• Only 1% of 138 million annual users currently borrow, highlighting significant headroom for growth as consumer lending penetration is expected to increase tenfold.

• Atome brings a $1 billion loan book, over 25 million cumulative users, and positive adjusted EBITDA.

• The region’s low formal credit penetration (5% credit card ownership, 14% bank borrowing) presents a massive opportunity for responsible financial inclusion.

• Atome’s AI-driven underwriting and diversified product suite enable disciplined, profitable growth with stable or improving delinquency rates.

Synergies, ecosystem integration, and AI/data advantages

• Embedded financial services leverage ecosystem data for superior credit underwriting, driving lower delinquency and higher recurring revenue.

• Atome’s AI models and data flywheel will be enhanced by integration with proprietary ecosystem data, accelerating underwriting improvements and operating leverage.

• Cross-sell opportunities expand as Atome’s merchant network complements the existing base, while Atome gains access to new distribution channels.

• Embedded offerings like credit cards and insurance illustrate the power of seamless integration, driving customer acquisition and engagement.

• AI-driven tools have increased merchant engagement, lending disbursals, and collections productivity, reinforcing the ecosystem’s value.