Grab Buys Years of Lending Experience in Atome Deal
Tech in Asia analyzes Grab's $1.5 billion deal for Atome, suggesting the company is acquiring consumer lending expertise rather than building it internally.
Grab Acquires Consumer Lending Expertise Through Atome Acquisition
Grab has secured significant consumer lending experience by acquiring a 60% stake in the buy-now-pay-later (BNPL) player Atome for $1.5 billion, according to Tech in Asia. This strategic move is presented not as building a new capability from scratch, but as accelerating Grab's expansion in consumer lending by acquiring established expertise.
While Grab possesses a large customer base and operates three digital banks, the acquisition of Atome brings with it a ready-made infrastructure and years of industry experience. The publication notes that Atome identifies borrowers, and Grab's digital banks will fund these loans using deposits, which are cheaper than external debt. This structure is expected to provide more cost-effective financing for Atome's loan portfolio.
The deal is also mutually beneficial for Atome. With Grab's digital banks financing its loans in specific markets, customer deposits can offer a cheaper source of funds. This symbiotic relationship is seen as enabling Grab to speed up its expansion while simultaneously reducing Atome's financing costs.
The analysis suggests Grab's decision to pay a premium for Atome, rather than developing similar capabilities internally, stems from a need for rapid market entry and expertise. A key question moving forward is whether customers will adopt Grab's GXS and GXBank services beyond promotional offers.
The article also references previous coverage of MoneyHero and Globe Telecom's data investments in the Philippines, providing broader context for the region's technology sector developments.