Grab is expanding its financial services business with the acquisition of Singapore-based buy now, pay later platform Atome Financial, giving the company a broader presence in consumer lending across Southeast Asia.
Grab will initially acquire a 60% controlling stake in Atome for $1.49 billion in cash. It plans to purchase the remaining 40% approximately two years after the first transaction closes. According to Grab’s CFO, the two-stage structure is partly intended to reduce the capital allocation risk associated with the acquisition.
Grab shares closed 3.64% lower on Nasdaq following the announcement.
Expanding beyond payments
The acquisition forms part of Grab’s broader strategy to build its financial services business beyond its existing products.
Atome provides buy now, pay later services and works with merchants across areas including travel, beauty and e-commerce. The acquisition gives Grab access to customer and merchant segments where its existing presence is more limited.
Grab expects the transaction to strengthen its ability to offer consumer lending products while expanding the scale of its financial services operations.
The company expects the acquisition to contribute more meaningfully during the latter part of the year following completion and into 2028. Grab currently expects its financial services segment to generate $500 million in adjusted EBITDA by 2028.
Building a broader financial platform
Grab plans to retain Atome’s existing management team. The period between the first and second stages of the transaction is also expected to provide time for the companies to identify and develop potential synergies.
The strategy reflects a wider shift among digital platforms in Southeast Asia toward financial services. Companies with large customer bases and established digital ecosystems can potentially use those networks to offer lending and other financial products alongside their core businesses.
For Grab, Atome adds another layer to an ecosystem that already connects consumers with transportation, deliveries, payments and other services.
The company is also considering additional opportunities within financial services. Micro investing is one area that management has identified as having potential across Southeast Asia.
Access to credit remains an opportunity
Grab also sees an opportunity to work with regulators to improve access to affordable credit across Southeast Asia.
Consumer lending can provide an additional source of growth for digital platforms, but expansion also brings greater exposure to credit risk, regulatory requirements and the broader economic environment.
Atome therefore gives Grab an opportunity to expand its financial services offering while also bringing new considerations around lending and consumer credit.
The success of the acquisition will depend in part on how effectively Grab integrates Atome, develops cross-platform opportunities and manages the risks associated with a larger lending business.
For investors, the transaction highlights Grab’s ambition to develop financial services into a more significant contributor to its overall business. The $500 million adjusted EBITDA target for 2028 provides a clear measure against which the company’s progress can be assessed as the acquisition moves toward full integration.