Grab to Acquire Atome Financial in Deal Valued at up to $4.5 Billion

Grab announced on Tuesday it will acquire buy now, pay later provider Atome Financial in a transaction that could value the Singapore-based lender at up to US$4.5 billion.

The ride-hailing and delivery platform is paying $1.49 billion for an initial 60 per cent stake. The transaction folds Atome’s consumer cash loans, instalment cards and digital lending books directly into Grab’s financial services arm.

Valuation and Performance Terms

Grab agreed to purchase the remaining 40 per cent stake roughly two years after completion. That second payout rests on Atome hitting revenue and EBITDA targets. The eventual valuation will land between $2 billion and $4.5 billion.

Alex Hungate, Grab president and chief operating officer, said buying Atome bypasses years of building credit models. It also avoids the initial credit losses required to refine underwriting. Grab plans to fund Atome’s consumer loan book through its licensed digital banks in Singapore, Malaysia and Indonesia to lower capital costs.

Lending Power Inside Southeast Asian Wallets

Consumer credit in Southeast Asia is consolidating around apps that control daily transactions. Independent instalment lenders face high customer acquisition costs and rising borrowing expenses. Stand-alone balance sheets struggle to compete with platforms that span ride-hailing, food delivery and retail spending.

Buying Atome prevents rival e-commerce ecosystems and standalone fintechs from locking up merchant checkouts in key growth markets. The risk shifts to default rates on unsecured consumer debt as economic conditions tighten in markets such as Indonesia and the Philippines.

“Consumer credit in Southeast Asia is increasingly sitting inside large commerce platforms or major wallet ecosystems. As underwriting and collection increasingly become commoditised, distribution becomes more important.”

From Credit Saison to Regional Scale

In 2019, Grab entered instalment lending through a joint venture with Japanese credit card company Credit Saison. The platform rolled out pay-later options across Singapore and Malaysia. Regional expansion into the Philippines, Indonesia and Thailand lagged behind dedicated consumer finance specialists.

The buyout is scheduled to close by the third quarter of 2027. Following integration, Grab expects its enlarged financial services unit to deliver $500 million in adjusted EBITDA by 2028 on a combined gross loan portfolio exceeding $6 billion.