Grab buys Atome Financial stake for $1.49

Grab will pay $1.49 billion for a 60 percent stake in digital lending firm Atome Financial. The Southeast Asian superapp aims to close the deal by the third quarter of next year, according to a company investor webcast.

Grab's co-founder and CEO, Anthony Tan, revealed the strategic logic behind the acquisition. He stated that of Grab's 138 million annual transacting users, only 1 percent currently borrow from the platform. "That's a deliberately small number," Tan said. "We prioritise prudence and profitability in scaling our financial services segment, even though we always knew the underlying demand was real."

The acquisition allows Grab to immediately integrate Atome's buy now, pay later (BNPL) loans, cards, and consumer cash-loan business. Atome brings a gross loan portfolio of about $1 billion and has served 25 million cumulative users across more than 30,000 brand partners.

Strategic Fit and Merchant Expansion

A key selling point for Grab is Atome's merchant network. Grab's own merchant base is heavily weighted towards food and beverage. Atome's partners, however, span categories like travel, electronics, home and lifestyle, fashion, beauty, and e-commerce.

Tan explained the complementary fit. These are categories we've historically never served, sitting at a different point on the frequency and average order value spectrum than our own F&B-heavy merchant base, he told investors. The deal creates two ecosystems that can sell into each other, with Atome gaining access to Grab's F&B merchants and Grab entering new retail verticals.

Analysts see the move as a way for Grab to catch up in the competitive BNPL arena. Vincent Fong, chief editor of Fintech News Singapore, noted that while Grab has 53.9 million monthly active users, it lacks a refined BNPL engine. They've been trying for a couple of years, but they're still falling behind players like Shopee Pay Later and Atome, Fong said.

Financial Performance and Targets

Grab highlighted Atome's growth and financial discipline. The company's gross merchandise value grew more than nine times over the past six years, and it already posts positive adjusted EBITDA. Tan noted this growth persisted through weaker macroeconomic conditions, indicating durable demand.

Following the acquisition announcement, Grab's shares closed 3.64 percent lower at $2.91. The company paired the deal with updated financial guidance.

The company expects its gross loan portfolio to exceed $6 billion by the end of 2028, up from more than $3 billion projected for the end of this year.

Deal Structure Tied to Performance

The acquisition's payment structure mirrors the BNPL model itself. The $1.49 billion for the initial 60 percent stake includes $260 million in primary growth capital injected into Atome. A second phase, about two years after the first closing, covers the remaining 40 percent at a formula-based price.

Tan emphasized the performance-linked nature of the full payout. We only pay full value for performance that Atome actually delivers, he said. The remaining 40 per cent is tied directly to Atome's adjusted EBITDA and revenue performance over the next two years. This staged approach aims to mitigate risk and ensure Grab pays for demonstrated growth.

Vincent Fong of Fintech News Singapore suggested the integrated model could be effective. With BNPL under Grab's broader service umbrella, it can act as a loss leader to attract users, who can then be cross-sold other, more profitable services. The deal's success now hinges on seamlessly merging the two platforms and realizing the projected cross-selling potential.