Ride-hailing and delivery company Grab has announced plans to go public in the U.S. Based in Singapore, the company has evolved from a ride-hailing app to a Southeast Asian super app that offers several consumer services, including food delivery and financial services, such as an e-wallet so you can send and receive money.
It operates in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, Philippines, Thailand and Vietnam. According to Crunchbase, the company has raised more than $10 billion, including from SoftBank’s Vision Fund.
In order to go public, Grab has chosen to merge with a SPAC named Altimeter Growth Corp. A SPAC is a publicly traded blank-check company based in the U.S. Going public through this process should be much easier for Grab — especially because it’s a foreign company.
If the deal goes through, it would be the world’s largest SPAC merger. Grab would be listed on Nasdaq under the symbol ‘GRAB”.
As part of the announcement, Grab has shared some metrics and some big numbers. In 2020, the company managed to generate around $12.5 billion in gross merchandise value (GMV). The merger would value Grab at $39.6 billion and the company would keep $4.5 billion in cash.
The company thinks there’s still a lot of room to grow when it comes to food delivery and on-demand mobility in Southeast Asia. It expects to see the total addressable market jump from $52 billion to $180 billion by 2025.
“This is a milestone in our journey to open up access for everyone to benefit from the digital economy. This is even more critical as our region recovers from COVID-19. It was very challenging for us too, but it taught us immensely about the resiliency of our business,” Grab co-founder and CEO Anthony Tan said in the announcement.
“Our diversified superapp strategy helped our driver-partners pivot to deliveries, and enabled us to deliver growth while improving profitability. As we become a publicly-traded company, we’ll work even harder to create economic empowerment for our communities, because when Southeast Asia succeeds, Grab succeeds,” he added.
Altimeter has agreed to a three-year lockup period for its sponsor shares, which means that Altimeter should remain committed to the company for a while.