Grab aims for 'next level' in financial services with purchase of buy-now pay-later platform Atome
Grab is betting $1.49 billion on Atome Financial as it looks to expand its consumer lending business in Southeast Asia.
TL;DR
- Grab is acquiring a 60% controlling stake in Atome Financial for $1.49 billion, with plans to purchase the remaining 40% later.
- The acquisition aims to expand Grab's consumer lending business and enhance its financial services capabilities in Southeast Asia.
- Atome partners with brands in travel, beauty, and e-commerce, areas where Grab has limited presence.
- The deal is expected to close next year and contribute to Grab's financial services segment generating $500 million in adjusted EBITDA by 2028.
- Grab plans to retain Atome's management team and explore synergies during the two-stage acquisition period.
- Grab also sees micro-investing as a potential opportunity in Southeast Asia and wants to work with regulators on fair credit access.