Grab Holdings Limited (“Grab”), Southeast Asia’s leading superapp, completed its previously announced business combination with Altimeter Growth Corp. (Nasdaq: AGC) (“Altimeter”), a special purpose acquisition company.
The transaction raised gross proceeds of US$4.5 billion in the largest-ever U.S. public market debut by a Southeast Asian company.
The business combination was approved by Altimeter stockholders in a special meeting held on November 30, 2021. Grab’s common stock is expected to begin trading on the Nasdaq on December 2, 2021 under the ticker symbol “GRAB.”
“We truly believe this is Southeast Asia’s time to shine, and we hope that our entrance into the global public market will help bring greater attention to the tremendous opportunity here in the region,” said Anthony Tan, Group CEO and Co-founder, Grab.
“Our evolution into a superapp was guided by the everyday problems we wanted to solve for the people we care about, and accelerated by the growing appetite for digital services in a rapidly transforming landscape.
“From on-demand mobility and deliveries to digital financial services, enterprise services and more, we believe we are only scratching the surface of the opportunity ahead of us.
“While there’s no doubt this is an exciting moment, we’re grounded in the knowledge that this is just day one. Our calling remains the same – to unlock greater opportunity for all Southeast Asians to participate in the digital economy.”
“Grab is an iconic, mission-driven and founder-led company that makes a difference in the lives of the people and communities it serves.
Grab’s powerful flywheel combining ride-hailing, delivery and payments has demonstrated durable growth even during the pandemic and is playing a foundational role in the digitization of Southeast Asia,” said Brad Gerstner, founder and CEO of Altimeter.
“Altimeter is honored to partner with Grab on this significant milestone and as long-term owners to support their continued innovation, growth and economic impact.”
Proceeds include a fully committed $4.0 billion PIPE, the largest ever raised, led by US$750 million from funds managed by Altimeter Capital Management, LP.
Other investors include funds and accounts managed or advised by BlackRock, Counterpoint Global (Morgan Stanley Investment Management), and T.Rowe Price Associates, Inc., as well as Fidelity International, Fidelity Management and Research LLC, Janus Henderson Investors, Mubadala, Nuveen, Permodalan Nasional Berhad, Temasek and K3 Ventures. Leading family groups from Indonesia including Djarum, the Sariaatmadja family and Sinar Mas also participated.
“We’re thrilled to participate in Grab’s debut on the public markets and serve as long-term partners with the company,” said Dennis Lynch, Head of Counterpoint Global (Morgan Stanley).
“Grab represents a unique growth investment in the dynamic and growing Southeast Asian market. We’re incredibly excited to help fuel the emergence of innovative technology platforms in Southeast Asia.”
Superapp Strategy Driving Continued Business Momentum
Grab operates across 465 cities in 8 countries, enabling high frequency hyperlocal consumer services such as food delivery, ride-hailing, grocery delivery, e-payments, financial services and more — all through a single “everyday everything” app.
The cornerstone of Grab’s superapp strategy is the ability to drive higher engagement amongst users, which increases loyalty and retention rates while reducing the cost to serve.
Grab by the numbers:
- Three straight quarters of record Gross Merchandise Value (GMV) in 2021, totalling US$11.5 billion in GMV through September 30, 2021
- 1 billion transactions completed in the first half of 2021
- Average spend per user increased 43% year-over-year in Q3 2021
- Regional category leader in Southeast Asia for online food delivery, ride-hailing, and e-wallet payments
- Largest on-demand driver supply network, with 5m+ million registered driver-partners
- Largest food delivery network in Southeast Asia, with 2m+ registered merchant-partners
- Total addressable market expected to grow to more than US$180 billion by 2025 across online food delivery, ride-hailing, and e-wallet payments
- The proportion of Grab consumers using more than one service rose from approximately 33% in December 2018 to approximately 55% in June 2021.
- According to App Annie, as of October 2021, the Grab app is installed on more than 40% of all smartphones in the Southeast Asia region – leading the mobility and delivery category.
Meeting the Unique Needs and Tremendous Market Opportunity in Southeast Asia
Grab is participating in some of the fastest-growing categories in one of the fastest-growing digital economies in the world.
Southeast Asia is home to approximately 660 million people, with a growing middle class and an increasingly online cohort of consumers and businesses.
The pandemic accelerated this shift. According to the e-Conomy SEA 2021 report by Bain, Google and Temasek, 40 million new internet users came online in 2021 in Southeast Asia.
All six core internet economies in the region are expected to post double-digit growth in GMV between 2021 and 2025.
Giving Back Through GrabForGood
Grab created the GrabForGood Fund in April 2021 to support programs that deliver social and environmental impact for Grab’s partners and the communities Grab operates in.
With an initial fund size of US$275 million, including a personal contribution of US$25 million in Grab shares from Grab Group CEO and co-founder Anthony Tan, co-founder Hooi Ling Tan and President Ming Maa, the Fund will support programs that address inequality, access to basic services, climate change and disaster relief in Southeast Asia.
Grab expects to launch an initial wave of programs focused on scholarships, bursaries and disaster relief in 2022.
In support of Grab’s mission and double bottom line goals, Altimeter is donating 10% of its sponsor promote shares, subject to a three-year lock up, to the GrabForGood fund.
Ringing the Bell in Southeast Asia
To commemorate this milestone in Southeast Asia, Grab founders Anthony Tan and Hooi Ling Tan will ring the Nasdaq opening bell from Singapore, joined on stage by Grab drivers and merchant partners, at 9:30 a.m. Eastern Time (10:30 p.m. Singapore Time) on December 2, 2021.
“It’s important to us not to lose sight of what this was all built on.
“The heart and hard work of our Grabbers to serve our partners, and in turn, the dedication of our partners towards serving their customers.
“That’s why we chose to hold the ceremony close to home.
“To be here, amongst our community, sharing the moment with them as we cross the threshold into a new chapter of our journey,” added Anthony Tan.
Leading up to the bell ringing and afterwards, Grab will feature photos of its employees and partners on the Nasdaq Tower in Times Square. – GRAB NEWS
