Southeast Asian technology company Grab has announced plans to acquire Atome Financial in a two-stage transaction, beginning with the purchase of a 60% stake for US$1.49 billion in cash.
The acquisition is part of Grab’s strategy to expand its financial services business, particularly in consumer lending and digital financing across Southeast Asia.
Under the agreement, Grab will initially acquire a controlling 60% interest in Atome Financial from Advance Intelligence Group and other shareholders.
The company will then purchase the remaining 40% approximately two years after the first transaction is completed, giving Grab full ownership of Atome Financial.
The proposed acquisition remains subject to regulatory approvals and other customary closing conditions.
The first stage of the transaction is expected to be completed by the third quarter of 2027.
The initial US$1.49 billion investment includes US$260 million in growth capital to support Atome Financial’s future expansion.
The purchase price for the remaining 40% stake will depend on Atome Financial’s business performance between the two transactions.
Under the agreed pricing formula, Atome Financial’s equity valuation for the second stage will range between US$2 billion and US$4.5 billion.
At least half of the payment for the remaining stake will be made in cash.
Atome Financial currently operates in five Southeast Asian markets, namely Singapore, Malaysia, the Philippines, Indonesia and Thailand.
The company provides a range of digital financial services, including buy now, pay later (BNPL) solutions, consumer cash loans, BNPL cards and other digital lending products.
Since its establishment, Atome Financial has recorded approximately 25 million cumulative transacted users and established partnerships with more than 30,000 brands.
It also manages a gross loan portfolio of approximately US$1 billion, reflecting the growing demand for flexible financing solutions across the region.
The acquisition is expected to strengthen Grab’s consumer lending capabilities while expanding its access to Atome Financial’s merchant network and customer base.
Grab President and Chief Operating Officer Alex Hungate said Atome Financial’s use of artificial intelligence (AI) in digital lending would support the growth of Grab’s financial services ecosystem.
“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,” he said.
He added that the acquisition would help Grab improve the profitability of its financial services business and create more opportunities to serve Atome Financial’s merchant partners.
Meanwhile, Advance Intelligence Group Chairman and Chief Executive Officer Jefferson Chen, who also serves as CEO of Atome Financial, said the partnership would help extend digital financing services to more underserved consumers.
“Powered by AI and data, every transaction makes our underwriting smarter and our products more personalised,” he said.
Chen added that combining Grab’s regional platform with Atome Financial’s AI-powered lending technology would allow both companies to reach millions of additional customers across Southeast Asia.
Following the completion of the first stage, Atome Financial’s existing management team will continue overseeing its operations.
Grab will also consolidate Atome Financial into its Financial Services segment, strengthening its position in the region’s growing digital lending market.
The proposed transaction follows Grab’s recent acquisition activities, including its purchase of US-based investment platform Stash Financial and its agreement to acquire Foodpanda’s Taiwan operations for US$600 million.
Grab said the initial acquisition would be funded entirely through its existing cash reserves.
Looking ahead, the company expects its financial services business, including Atome Financial, to generate adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$500 million by 2028.
The segment is also projected to achieve a gross loan portfolio exceeding US$6 billion by the same year.
At the group level, Grab has increased its 2028 financial targets, aiming to achieve adjusted EBITDA of US$1.7 billion.
The company is also targeting compound annual revenue growth of more than 30% between 2025 and 2028.
The planned acquisition reflects Grab’s continued efforts to expand beyond its core ride-hailing and delivery operations into digital banking, lending and other financial services.
By combining Atome Financial’s lending technology and customer network with Grab’s existing ecosystem, the company aims to strengthen its regional financial services business and provide more financing options to consumers and merchants across Southeast Asia.
