The Singapore based ride-hailing service provider “Grab” has agreed to a $39.6 Billion SPAC merger with Altimeter Growth Corp. (NASDAQ: AGC) to go public in the US. This record-setting merger will raise $4.5 billion for Grab, which will be invested in the expansion of digital financial services and other offerings.
The company follows a “super app” strategy, aiming to deliver finance, insurance and delivery services in one application. Meanwhile, Grab has also expanded geographically and now operates across eight south-east Asian countries.
Current investors include SoftBank, Toyota, Microsoft, and Uber. BlackRock and the Singapore state fund Temasek Holdings will join the list of backers via a PIPE deal as part of the disclosed deal.
Grab co-founder and CEO Anthony Tan is convinced that this deal validates the success of his business strategy, further manifested by their geographical diversification with a maximum of 35% of revenue coming from a single market.
Moreover the company is confident to turn EBITDA profitable by 2023, providing a 161% revenue growth YoY, while reducing their net losses.