Grab Holdings Inc., Southeast Asia’s leading superapp, today announced financial results for the quarter ended June 30, 2021.
The company posted record Gross Merchandise Value and Adjusted Net Sales of $3.9 billion and $550 million respectively.
Total revenue was $180 million, up 132% year-over-year (“YoY”). Adjusted EBITDA for Q2 2021 was $(214) million and Net Loss was $(815) million.
Grab’s planned business combination with Altimeter Growth Corp. (Nasdaq: AGC), a special purpose acquisition company, continues to progress and is expected to close in the fourth quarter.
“We had a strong quarter with double, and in some cases, triple-digit growth year-over-year across all of our core verticals.
“This was in spite of a worsening COVID-19 environment, which saw many Southeast Asian countries tightening movement restrictions as cases surged,” said Anthony Tan, Group CEO and Co-founder of Grab.
“Our growth is testament to the resilience of our superapp business model and the significant market opportunity in the region.
“As the platform becomes more relevant to everyday life in Southeast Asia, we’ve seen user spend grow by 27% year over year.
“At the same time, we’re creating more opportunities for merchants – our GrabFood merchant base has more than doubled, while merchants using GrabPay nearly tripled.”
Peter Oey, Chief Financial Officer of Grab, commented, “We achieved a record quarter in terms of Gross Merchandise Value and Adjusted Net Sales, and continue to experience strong traction in our newer services like GrabMart and PayLater.
While the COVID-19 situation on the ground is challenging, our business continues to be resilient, and we are increasing our investments in our superapp ecosystem in anticipation of the market recovery as vaccination rates improve.
Our deliveries business continues to outperform and is growing rapidly, with the addition of new offerings such as GrabMart and GrabSupermarket, and we expect to continue investing heavily in this segment.”
Second Quarter 2021 Financial and Operational Highlights
- Gross Merchandise Value (GMV) grew 62% YoY to reach $3.9 billion, a new record for Grab. Deliveries and mobility demonstrated strong YoY GMV growth of 58% and 93% respectively, in spite of governments tightening movement restrictions on the back of the COVID-19 pandemic.
- Adjusted Net Sales reached a new all-time high of $550 million, up 92% YoY.
- Revenue grew 132% YoY to $180 million.
- Adjusted EBITDA of $(214) million was down by $8 million YoY.
- Net loss, which includes $608 million in non-cash items for interest accrued on Grab’s convertible redeemable preference shares, stock based compensation, depreciation and amortization, was $(815) million, compared to $(718) million in Q2 2020.
- Monthly Transacting Users grew 28% YoY, while spend per user, defined as GMV per Monthly Transacting Users (MTU), increased by 27% YoY.
- Registered GrabFood merchants more than doubled YoY in Q2 2021, compared to Q2 2020, while registered GrabPay merchants nearly tripled.
- As of June 30, 2021, Grab had cash liquidity of $5.3 billion, an increase of $1.6 billion from $3.7 billion as of December 31, 2020.
Deliveries
- GMV for deliveries grew 58% YoY to $2.1 billion, and represented 53% of total GMV.
- Adjusted Net Sales for deliveries was $345 million, a 68% increase YoY.
- Revenue for deliveries was $45 million, up 92% YoY.
- Deliveries Segment Adjusted EBITDA of $(20) million improved by $16 million YoY.
- GrabMart, Grab’s everyday goods delivery offering, continues to grow rapidly, with GMV for Q2 2021 up 44% quarter-on-quarter compared to Q1 2021, and close to 5x higher compared to Q2 2020.
- Grab continues to expand its deliveries network. GrabSupermarket launched in the Philippines in September, offering consumers next-day delivery of a wide array of high-quality, affordably priced fresh produce, sourced directly from reputable farmers and suppliers located across the community. This is Grab’s third online supermarket in the region, following launches in Malaysia and Singapore; Grab plans to launch GrabSupermarket in one more country before the end of the year.
- Grab also plans to launch 10 new GrabKitchens in the second half of 2021, and is piloting new dine-in solutions such as Scan to Order that allow dine-in users to browse the menu, place their orders and pay through the Grab app.
- On the merchant side, Grab is focused on helping merchants to run their online businesses more efficiently with the right tools and training. Registered merchants for GrabFood in Q2 2021 more than doubled YoY compared to Q2 2020.
Mobility
- Grab saw strong growth in mobility in Q2 2021, generating GMV of $685 million, an improvement of 93% compared to Q2 2020.
- Adjusted Net Sales for mobility grew 122% YoY to $146 million.
- Mobility Revenue increased 129% YoY to $118 million.
- Mobility Segment Adjusted EBITDA was $90 million, an increase of $62 million compared to Q2 2020.
- As of August 2021, vaccination rates for active Grab driver-partners [3] in Cambodia, Indonesia, Malaysia, Philippines, Singapore and Vietnam are higher than national vaccination rates [4]. Approximately 91% and 92% of active driver-partners in Malaysia and Singapore respectively have been vaccinated.
- Grab expects demand for mobility services to improve in the coming quarters as vaccination rates increase across the region, and continues to support governments in their vaccination efforts.
Financial Services
- Grab’s financial service segment achieved another record quarter for Total Payments Volume (Pre-InterCo) [5] of $2.9 billion, a 66% increase from Q2 2020.
- Adjusted Net Sales for Financial Services increased 140% YoY to $26 million.
- Financial services Revenue grew by 156% YoY to $6 million.
- Financial services Segment Adjusted EBITDA for Q2 2021 was $(85) million, compared to $(74) million in Q2 2020.
- Loan disbursals achieved an all-time high, with a 4.1x increase YoY, and 43% quarter-on-quarter compared to Q1 2021, with Grab PayLater continuing to gain momentum, especially with e-commerce merchants.
- Grab’s insurance offerings continued to see strong growth, as gross written premiums more than quadrupled YoY.
- Registered GrabPay merchants as of Q2 2021 nearly tripled compared to Q2 2020.
Enterprise and New Initiatives
- GMV for enterprise and new initiatives grew more than 6 times YoY to reach $34 million.
- Adjusted Net Sales for the segment grew more than 6 times YoY to $33 million.
- Revenue for the segment was $11 million in Q2 2021.
- Enterprise and new initiatives Segment Adjusted EBITDA increased by $7 million YoY to $1 million.
- Off the back of strong growth in deliveries, Grab continues to focus on providing merchants with affordable self-serve advertising solutions through the GrabMerchant superapp, empowering them to reach more users and drive more sales.
As of June 30, 2021, Grab had cash liquidity (including time deposits, marketable securities and restricted cash) of $5.3 billion, an increase of $1.6 billion from $3.7 billion as of December 31, 2020.
Total outstanding debt as of June 30, 2021 was $2.1 billion, a $1.9 billion increase from $212 million as of December 31, 2020, primarily due to the closing of the $2.0 billion Term Loan B Facility in January 2021.
New Strategic Partnership and Continued Momentum in Indonesia
In July 2021, Grab announced a strategic alliance with Emtek Group, one of Indonesia’s leading conglomerates with a portfolio of businesses spanning technology, telecommunications, and media.
The partnership brings together two of Indonesia’s largest digital ecosystems, and both companies will join forces to accelerate digital transformation for Indonesian micro, small and medium enterprises in Tier 2 and Tier 3 cities while creating more accessible digital offerings for everyday Indonesians.
Grab and Emtek Group will explore potential collaborations across logistics and e-commerce, financial services, telemedicine, advertising and digital media, as well as digital products for traditional kiosks or warungs.
As an example, in a new collaboration, Grab will onboard Bukalapak’s [6] stores on to GrabMart, providing these merchants with access to new customers.
NielsenIQ’s latest Finance State of Play (conducted in 12 markets globally) report in Indonesia [7] found OVO, Grab’s financial services subsidiary in Indonesia controlled through a consolidated joint venture, to be a leading player among mobile wallets in the country in terms of awareness and usage.
Among e-wallet users in the survey, 54% chose OVO as the brand they used most often. The report, produced in July 2021, also found that GrabFood was chosen by 48% of the online food delivery users in the survey as the most often used brand, while 45% chose the next competitor.
Grab was also seen as an important player in the ride-hailing space being chosen by 63% and 59% as the most often used brand for motorcycle ride-hailing and car ride-hailing respectively by users of these categories.
Full Year 2021 Outlook
While Grab observes encouraging trends in vaccination rates, it remains cautious of the renewed uncertainty of movement restrictions in Southeast Asia related to COVID-19.
Among other factors, Grab’s full year 2021 outlook anticipates an extension of partial and complete lockdowns throughout several countries where Grab operates as a result of the continuing spread of COVID-19. Grab is monitoring the impact on its business and currently expects:
- Group-level Gross Merchandise Values of $15.0 billion – $15.5 billion
- Group-level Adjusted Net Sales of $2.1 billion – $ 2.2 billion
- Group-level Adjusted EBITDA [8] loss of $(0.9) billion – $(0.7) billion
Investor Webcast
Grab’s senior management team including Anthony Tan, Group CEO and Co-Founder, Ming Maa, President, and Peter Oey, CFO, will host an investor webcast via Zoom to present its second quarter 2021 financial results and business updates.
About Grab
Grab is Southeast Asia’s leading superapp based on GMV in 2020 in each of food deliveries, mobility and the e-wallets segment of financial services, according to Euromonitor.
Grab operates across the deliveries, mobility and digital financial services sectors in over 400 cities in eight countries in the Southeast Asia region – Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Grab enables millions of people each day to access its driver- and merchant-partners to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending, insurance, wealth management and telemedicine, all through a single “everyday everything” app.
Grab was founded in 2012 with the mission to drive Southeast Asia forward by creating economic empowerment for everyone, and since then, the Grab app has been downloaded onto millions of mobile devices.
Grab strives to serve a double bottom line: to simultaneously deliver financial performance for its shareholders and a positive social impact in Southeast Asia.
About Altimeter
Altimeter Capital Management, LP is a leading technology-focused investment firm built by founders for founders with over $15 billion in assets under management.
Altimeter’s mission is to help visionary entrepreneurs build iconic companies, disrupt markets and improve lives through all stages of growth.
Altimeter manages a variety of venture and public funds and serves as an expert long-term partner to companies as they enter the public markets. – GRAB NEWS
