Grab announced its plan to acquire Singapore-based buy-now, pay-later platform Atome Financial, marking a significant expansion into consumer lending. The deal involves Grab purchasing an initial 60% controlling stake in Atome for $1.49 billion in cash, with the intention to acquire the remaining 40% approximately two years after the first transaction closes. This two-stage acquisition structure was designed to 'de-risk' the transaction from a capital allocation perspective, according to Grab CFO Peter Oey [1].
The acquisition is part of Grab's broader strategy to scale its financial services business beyond its current offerings. Oey stated that consumer lending is the 'next frontier' for Grab, and that the Atome deal would be accretive to the business, contributing to the company's decision to raise its 2028 outlook. Grab expects its financial services segment to generate $500 million in adjusted EBITDA by 2028 [1].
Following the announcement, Grab shares closed 3.64% lower on Nasdaq, indicating a negative immediate market reaction [1]. The transaction is expected to close next year, with Atome's financial contribution anticipated to become more meaningful toward the latter part of that year and into 2028. Grab also plans to retain Atome's management team and use the period between the two acquisition stages to work on potential synergies [1].
In addition to the Atome acquisition, Grab highlighted micro-investing as another potential growth area in Southeast Asia and expressed interest in working with regulators to improve access to fair credit in the region. The company also announced its intention to complete the remaining approximately $900 million of its share repurchase program over the next 12 months [1].
CONCLUSION
Grab's acquisition of Atome Financial for $1.49 billion signals a major push into consumer lending and financial services. While the market initially reacted negatively, Grab remains optimistic about the deal's long-term accretive impact and its raised 2028 outlook. The company is also exploring further opportunities in micro-investing and credit access in Southeast Asia.