Grab takes majority stake in Atome Financial in US$1.5 billion deal

Singapore-based ride-hailing and delivery firm Grab announced on September 15 that it has reached a US$1.5 billion deal to acquire majority stake in Singapore-based buy now, pay later (BNPL) provider Atome Financial. This move is expected to boost Grab's push into South-east Asian consumer lending and potentially value the target at up to US$4.5 billion.

Grab will take an initial 60% stake in Atome, which includes the company's BNPL loans, consumer cash loans, BNPL cards, and digital lending services. The remaining 40% of Atome's stake will be acquired by Grab about two years after the transaction closes, contingent on Atome's performance as measured by its earnings before interest, taxes, depreciation, and amortisation (EBITDA) and revenue.

A performance-linked framework will determine the acquisition price, with the valuation ranging between US$2 billion and US$4.5 billion. Grab expects the combined financial services segment, including Atome, to generate an adjusted EBITDA of US$500 million by 2028 and achieve over US$6 billion in gross loan portfolio.