Grab acquires Atome, lifts 2028 EBITDA target to US$1.7 billion
Singapore's Grab plans to pay US$1.49 billion for an initial 60% stake in consumer lender Atome, aiming to significantly boost its financial services segment by 2028.
Grab's Strategic Acquisition
Southeast Asian technology giant Grab is advancing its consumer lending ambitions with the planned acquisition of an initial 60% stake in fintech firm Atome. Grab will pay US$1.49 billion in cash for the stake, a move designed to significantly expand its financial services segment.
The transaction is anticipated to close by the third quarter of 2027, subject to customary regulatory approvals and other closing conditions. This deal underscores Grab's strategy to deepen its presence in the region's digital finance landscape.
Elevated Financial Targets
Following the Atome announcement, Grab has increased its overall adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) target for 2028 from US$1.5 billion to US$1.7 billion. The company projects its financial services unit, now encompassing Atome, will achieve US$500 million in adjusted EBITDA by 2028.
Furthermore, the gross loan portfolio within this segment is expected to surpass US$6 billion, reflecting the aggressive growth strategy in consumer credit.
Analyst's Valuation and Outlook
Maybank Investment Bank estimates that Atome could contribute between US$200 million and US$220 million to Grab's EBITDA by 2028. The research house calculates the acquisition at approximately 12 times Atome's projected 2028 enterprise value to EBITDA.
Maybank’s modelling suggests that acquisitions account for about US$360 million of additional EBITDA in Grab's upgraded 2028 outlook, partially offset by roughly US$160 million in further investment. Maybank maintained a "buy" rating and US$5.40 target price on Grab, while flagging execution and capital allocation risks related to the Atome deal.
Grab's significant investment in Atome highlights the intensifying competition within Southeast Asia's digital lending and payments sector. For Grab, successful integration of Atome's existing lending infrastructure and merchant network across its broader ecosystem will be crucial to justifying the valuation and achieving its ambitious financial targets.
Investors will closely watch the closing of the deal in late 2027 and Grab's subsequent performance, particularly how it manages the inherent execution and capital allocation challenges in the rapidly evolving regional fintech market.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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