Grab Acquires 60 Per Cent of Atome Financial for US$1.49 Billion

Deal Structure and Valuation

Grab announced on 15 September that it will acquire an initial 60 per cent stake in Atome Financial for US$1.49 billion. The transaction brings together Atome's Buy Now, Pay Later loans, consumer cash lending, BNPL cards and digital lending operations with Grab's existing financial services division.

The Singapore-based ride-hailing and delivery company has also secured an agreement to purchase the remaining 40 per cent stake approximately two years after the initial transaction closes. That second tranche operates under a performance-linked framework tied to Atome's EBITDA and revenue, with the total valuation capped at US$4.5 billion and floored at US$2 billion.

The deal is expected to close by the third quarter of 2027, subject to regulatory approvals.

Financial Projections

According to Peter Oey, CFO of Grab, the combined entity is projected to generate adjusted EBITDA of US$500 million by 2028, with a gross loan portfolio exceeding US$6 billion. The acquisition forms part of Grab's broader push into consumer lending across Southeast Asia, a market where digital payment adoption has accelerated but credit penetration remains relatively low compared to developed economies.

Grab is raising its 2028 financial targets in light of the transaction. The company now expects adjusted EBITDA of US$1.7 billion and annual revenue growth above 30 per cent between 2025 and 2028.

Strategic Rationale

The acquisition positions Grab to scale its financial services business at a time when Buy Now, Pay Later products have gained traction among younger consumers in the region. Atome operates across multiple Southeast Asian markets, offering instalment payment options at point of sale, both online and offline.

By integrating Atome's lending infrastructure, Grab gains access to an established user base and underwriting capabilities that complement its own payments and digital wallet operations. The company has been building out its financial services segment since launching GrabPay, and the Atome deal represents its largest move yet in consumer credit.

Market Context

BNPL services have grown rapidly in Southeast Asia over the past five years, driven by a young, digitally savvy population and relatively limited access to traditional credit cards. However, the sector has also faced regulatory scrutiny in several markets, with authorities in Singapore and Malaysia introducing guidelines around responsible lending and affordability checks.

Grab's decision to pursue a staged acquisition, with the second tranche contingent on performance metrics, reflects a degree of caution around Atome's future earnings trajectory. The structure allows Grab to control the integration process while deferring a portion of the purchase price until Atome demonstrates sustained profitability.

The transaction also comes as competition in Southeast Asian fintech intensifies. Regional players including Sea's SeaMoney and GoTo's financial services arm have been expanding their lending operations, while global payment companies have entered the market through partnerships and acquisitions.

What Comes Next

Completion of the deal hinges on regulatory clearances in the jurisdictions where both Grab and Atome operate. Given the size of the transaction and the financial services component, approvals from monetary authorities in Singapore and other Southeast Asian countries will be required.

Once integrated, Atome's lending products are expected to be offered to Grab's existing user base, which spans ride-hailing, food delivery and digital payments. The company has not disclosed whether Atome will continue to operate as a standalone brand or be folded into Grab's financial services platform.

Investors will be watching whether Grab can meet its revised 2028 targets and whether the combined loan portfolio reaches the projected US$6 billion mark. The success of the integration will likely depend on credit quality, regulatory compliance and the ability to cross-sell financial products to Grab's broader ecosystem.