SINGAPORE – Grab’s proposed acquisition of a controlling stake in buy-now, pay-later (BNPL) provider Atome Financial is the latest step in efforts to turn its ride-hailing and delivery platform into a broader financial and lifestyle super-app for South-east Asia.
Atome operates in Singapore, Malaysia, the Philippines, Indonesia and Thailand, and has recorded transactions from 25 million users since its launch in 2019. It also has a gross loan portfolio amounting to US$1 billion.
On the face of it, the deal appears to benefit Grab and its shareholders. But some analysts have voiced concerns over the proposed premium.
Grab has agreed to pay US$1.49 billion in cash for a controlling 60 per cent stake in Atome. It will acquire the remaining 40 per cent around two years after the first stage of the deal is completed, which is expected in the third quarter of 2027, subject to certain conditions.
Grab chief financial officer Peter Oey said building a consumer-lending business from scratch would take time and involve upfront risks. Acquiring Atome would allow Grab to leapfrog the upfront costs and scale more quickly in a market where it has so far captured only a fraction of the potential transactions and growth.
Atome would also give Grab a ready-made consumer-lending operation, complementing its existing mix of financial services comprising payments, digital banking, insurance and loans to drivers and merchants.
The acquisition would connect Grab to Atome’s network of more than 30,000 brands and 25 million cumulative transacting users across Singapore, Malaysia, Indonesia, the Philippines and Thailand.
That could enable Grab to draw more users into its mobility, delivery and financial services app for the first time, entrenching them in the ecosystem as these services become part of their lifestyles.
It would also give Grab access to rich datasets, enabling it to analyse spending habits and propose new products and discounts to keep users spending within the ecosystem.
The deal could also open the door for Grab to tap a segment that traditional financial institutions have struggled to serve. The company estimates that more than 70 per cent of adults in South-east Asia remain unbanked or underbanked, meaning they either lack access to formal banking services or are not adequately served by them.
On that front, Grab has pitched the acquisition as a way to extend formal credit to consumers and businesses that lack conventional credit histories.
Its existing lending business offers some evidence of this. In 2025, 68 per cent of its driver-partners who borrowed from Grab obtained formal credit for the first time, while half said the loans helped them avoid predatory lenders.
New opportunity for growth
Acquiring Atome offers Grab another source of growth, just as its established mobility and delivery businesses have begun producing more consistent profits after years of losses. It would also boost the profitability of the financial services segment, which is still loss-making.
Grab’s revenue rose 22 per cent year on year to US$997 million (S$1.27 billion) in the second quarter of 2026.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 54 per cent to US$168 million, marking its 18th consecutive quarter of adjusted EBITDA growth.
Operating profit was US$19 million.
While still unprofitable, financial services was its fastest-growing segment.
Revenue surged 59 per cent to US$134 million, or about 13 per cent of group revenue, driven by increased lending and the consolidation of Indonesian digital bank Superbank, which Grab took control of in May. The segment’s adjusted EBITDA loss narrowed to US$15 million from US$26 million a year earlier.
Grab’s gross loan portfolio almost tripled to US$2.3 billion, partly due to the consolidation of Superbank. Even excluding Superbank, the portfolio doubled, underscoring the rapid expansion of Grab’s lending business.
Better deal for Atome?
While analysts mostly viewed Grab’s proposed acquisition of Atome as positive, some noted that Atome got a better deal.
Jianggan Li, chief executive of Singapore-based consultancy Momentum Works, noted that Atome is selling from a position of strength.
Its revenue surged 80 per cent to US$470 million in 2025, when it recorded a second consecutive year of pre-tax profitability. This likely gave it greater bargaining power over the transaction’s price and terms.
The timing is also favourable. Joining Grab gives Atome access to a much larger ecosystem before that window narrows, said Li. He noted that independent BNPL providers risk being squeezed as regional platforms such as Grab, Sea and GoTo build their own lending capabilities.
Still, Grab may have overpaid.
Nirgunan Tiruchelvam, head of consumer and internet at Aletheia Capital, added that aased on Atome’s 2025 revenue, Grab’s offer reportedly values the company at about 5.3 times enterprise value to sales.
Even if Atome’s revenue grows by more than 65 per cent in 2026, the multiple would still be around three times. By comparison, larger listed BNPL provider Klarna trades at about 0.9 times enterprise value to revenue, he said.
Tiruchelvam’s concern is that Grab is paying in advance for synergies that have yet to be demonstrated, noting that it must integrate Atome, control customer-acquisition and credit costs, and defend the business against rivals before the promised growth and cost savings materialise.
Subject to the deal closing as planned, Grab expects Atome and its other financial-services businesses to generate US$500 million in adjusted EBITDA and hold a combined gross loan portfolio exceeding US$6 billion by 2028.
Grab also raised its group targets for 2028, forecasting adjusted EBITDA of US$1.7 billion and annual revenue growth of more than 30 per cent between 2025 and 2028.
It also said the Atome acquisition will not affect its plan to complete the remaining US$900 million of an ongoing US$1.75 billion share-buyback programme over the next 12 months.
Shares of the company traded at US$2.81 on Sept 18, down almost 7 per cent through the week.
