Grab has agreed to acquire Atome Financial in two phases, starting with a controlling 60% stake for US$1.49 billion in cash.
Under the second phase, it has agreed to acquire the remaining 40% from Advance Intelligence Group and other shareholders approximately two years after the initial transaction closes.
This would give Grab full ownership of Atome Financial, subject to regulatory approvals and other customary conditions.
The first phase is expected to close by the third quarter of 2027. The US$1.49 billion consideration includes US$260 million in growth capital.
The price for the remaining stake will depend on Atome Financial’s performance between the two transactions.
The formula for the second phase places a floor of US$2 billion and a cap of US$4.5 billion on the company’s equity valuation. At least half of the consideration will be paid in cash.
Grab Targets Growth in Consumer Lending
Atome Financial operates in Singapore, Malaysia, the Philippines, Indonesia and Thailand.
Its services include buy now pay later financing, consumer cash loans, BNPL cards and digital lending.
The company has recorded 25 million cumulative transacted users and works with more than 30,000 brands. It also has a gross loan portfolio of about US$1 billion.
Grab President and Chief Operating Officer Alex Hungate said,
“Atome Financial’s leading use of AI to underwrite digital lending to millions of users across the region, while managing risk effectively, will help to scale and strengthen Grab’s whole ecosystem.
The proposed transaction accelerates the growth and profitability of our financial services segment by deepening our consumer lending capabilities and unlocking opportunities for us to serve Atome’s large merchant network.”
Jefferson Chen, Chairman and CEO of Advance Intelligence Group Limited, and CEO of Atome Financial said,
“Powered by AI and data, every transaction makes our underwriting smarter and our products more personalised.
With Grab’s ecosystem, and our proven AI-powered lending infrastructure, we can extend that to millions more across Southeast Asia who’ve been left out — and together, do more to close the financial inclusion gap than either of us could alone.”
Atome Financial’s management team will continue to run the business after the first phase closes, when Grab will consolidate it into its Financial Services segment.
The deal continues Grab’s recent acquisition push, following its purchase of US investment platform Stash Financial and agreement to buy Foodpanda’s Taiwan business for US$600 million.
Grab will fund the initial acquisition entirely from its existing cash.
Including Atome Financial, the financial services business is expected to generate adjusted EBITDA of US$500 million and reach a gross loan portfolio of more than US$6 billion by 2028.
The group also raised its 2028 targets to US$1.7 billion in adjusted EBITDA and compound annual revenue growth of more than 30% from 2025 to 2028.
Featured image: Edited by Fintech News Singapore, based on image by starmultikharisma via Magnific
