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In focus
- The Grab-Atome deal is more than just an acquisition
- A look into our archives as the drama at MoneyHero rolls on
- Philippines’ Globe Telecom plans to splash out US$1 billion in data push
Hello reader,
I’ve never used buy now, pay later. But if I ever do, I’d probably pick a name I recognize.
Atome would be on top of that list. So when Grab agreed to spend US$1.5 billion on a 60% stake in the BNPL player, it got me thinking: What exactly is Grab getting with this deal?
The company already has millions of customers and three digital banks. In Indonesia, it even offers Ovo PayLater within its app.
So this isn’t Grab starting from scratch, and it certainly has the resources to build a contender. My haphazard guess is that its decision was down to a simple question: How long will it take to get good at consumer lending across several markets?
Our guest writer David Jimenez Maireles seems to agree with that. In today’s top story, he argues that Grab is buying years of lending experience alongside Atome’s customers and infrastructure.
The price might look steep to some, but so is the time needed to recreate everything that has brought Atome to this point.
There’s something in it for the BNPL player, too. In markets where Grab’s digital banks fund its loans, customer deposits could offer a cheaper source of money.
Grab gets to accelerate its expansion in consumer lending, while Atome gets a cheaper way to finance those loans in some markets. On paper, it looks like a win-win.
Glenn Kaonang, journalist
Top Story
Why Grab paid $1.5b for Atome instead of building lending
Image credit: Ulla
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