Grab Holdings, the largest ride-hailing and food delivery company in South East Asia, has agreed to a record USD 39.6 billion merger with United States-based Altimeter Growth Corp.
In 2020, Grab reported adjusted net revenue of $1.6 billion and expects this to rise to $4.5 billion in 2023.
Funds managed by Altimeter Capital will lead the investment with USD 750 million while other investors such as Temasek Holdings, Abu Dhabi’s Mubadala, and Malaysia’s Permodalan Nasional Bhd will participate in a USD 4 billion private investment in public equity offering.
Grab said its decision to go public was based on last year’s strong financial performance.
Grab’s co-founder Anthony Tan told Reuters that the funds will be used to improve last-mile delivery network and financial services business, such as digital bank and mobile payments.