Grab (GRAB.US) buys 60% of buy-and-pay platform Atome for US$1.49 billion, betting on the “next frontier” of consumer credit

The Zhitong Finance App learned that Grab (GRAB.US) is acquiring Singapore-based Buy Now, Pay Later (BNPL) platform Atome Financial to expand its consumer credit business. The company announced that it will acquire 60% of Atome's controlling shares for $1.49 billion in cash and plans to acquire the remaining 40% approximately two years after the initial transaction is completed. Grab's chief financial officer Peter Oey said on Wednesday that this two-stage structure was partly to “de-risk” the deal from a capital allocation perspective.

Grab also raised its 2028 earnings forecast and stated separately that it plans to complete the remaining $900 million in its share repurchase program within the next 12 months.

The acquisition is part of Grab's push to scale its financial services business beyond its existing products, and the company is betting that Atome will help it expand consumer credit coverage.

“All of this combined actually brought our financial services capabilities to the next level,” Oey said, adding that the deal will boost the company's performance and is one of the reasons Grab raised its 2028 performance outlook.

Oey said Atome has collaborated with brands in the travel, beauty, and e-commerce sectors, which has enabled Grab to enter a field where its presence is limited.

The deal is expected to close next year, which means Atome's contribution will be more significant between late next year and 2028, he said. Grab expects its financial services sector to achieve an adjusted EBITDA of $500 million by 2028.

Oey said Grab plans to retain Atome's management team, and the time between the two phases will give the two companies time to advance potential synergies.

In addition to the Atome deal, Oey also pointed to micro-investing (micro-investing) as another potential opportunity in Southeast Asia. He said that fair access to credit in Southeast Asia is an area that the company hopes to work with regulators to promote.