Grab’s wild shopping spree takes a sensible turn

Delivery Hero SE

16/09/2026 13:00

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Katrina Hamlin
HONG KONG, Sept 16 (Reuters Breakingviews) - Grab's GRAB.O spending habits are worrying. The Southeast Asian ride-hailing group's Nasdaq-listed shares have plunged more than 40% this year despite buybacks as it snapped up a U.S. investment app, a robotics startup and more. But its latest acquisition underpins a strategic shift into consumer finance, as part of boss Anthony Tan's push to grow a fledgling finance business. A prudent deal structure should also soften some of the blow.
The $11.9 billion Singapore-based company will digest buy now, pay later outfit Atome in two tranches, starting with a 60% stake for $1.5 billion in cash. The remainder will follow two years later with the price based on the target's EBITDA and revenue performance. It's a clever way to protect shareholders from any downside while incentivising the target's management to hit growth targets. Atome's equity will be valued between $2 billion and $4.5 billion under this structure.
The bet is that Atome’s 25 million users and $1 billion gross loan portfolio can turbocharge Grab’s financial services division, which accounts for 13% of its top line. That should help offset slowing growth in the company’s core ride-hailing and food delivery business. Blame rising fuel prices, Indonesia's decision to cap commissions from two-wheeler drivers plus strikes in Vietnam. Rival GoTo's GOTO.JK Jakarta-listed shares fell 22% this year before they were frozen after hitting the stock market’s price floor.
The selloff makes for an awkward M&A spree. In January, Grab invested an undisclosed sum in Chinese robotics firm Infermove. In February it followed that up with a plan to acquire U.S. fintech whizz Stash Financial at a valuation of $425 million. A month later, it picked up Delivery Hero’s DHER.DE Taiwan business for $600 million.
At least Tan has a healthy war chest: as of June, the company’s net cash topped $5.4 billion. But Grab’s operating cash flow turned negative in the first half of the year. Moreover, it is in the midst of a massive share buyback scheme: on the same day it announced the Atome acquisition, it said it plans to complete the remaining $900 million over the next 12 months, bringing the total since 2024 to $1.75 billion.
So while Tan’s latest purchase looks sensible, it's hard to see the merits of Grab's broader M&A spree.
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CONTEXT NEWS
Singapore's Grab said on September 15 it would acquire buy now, pay later provider (BNPL) Atome Financial.
Grab will take an initial 60% ​stake in Singapore-based Atome for $1.49 billion, combining the target's BNPL loans, consumer cash loans, BNPL ⁠cards and digital lending with its own financial services business.
The company also agreed to acquire the remaining 40% ​stake about two years after the first transaction closes. That stake will be valued using a formula that applies a multiple of 13 times annualised, adjusted EBITDA and a 2.5 times multiple of annualised revenue, each measured based on the six-month period immediately prior to the second transaction closing and weighted at 75% and 25%, respectively.   
     The final equity valuation is subject to a $2 billion floor and a $4.5 billion ceiling.

(Editing by Robyn Mak; Prodyution by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on HAMLIN/katrina.hamlin@thomsonreuters.com; Reuters Messaging: katrina.hamlin.thomsonreuters.com@reuters.net))