Grab aims for 'next level' in financial services with purchase of buy-now pay-later platform Atome

Grab is buying Singapore-based buy-now, pay-later platform Atome Financial as it looks to expand in consumer lending.

The company announced it would acquire an initial 60% controlling stake in Atome for $1.49 billion in cash, with plans to buy the remaining 40% roughly two years after the first transaction closes. The two-stage structure was partly designed to "de-risk" the transaction from a capital allocation perspective, CFO Peter Oey told CNBC's "Squawk Box Asia" on Wednesday.

Grab shares closed 3.64% lower on Nasdaq following the announcement.

The acquisition is part of Grab's push to scale its financial services business beyond its existing offerings, with the company betting that Atome can help expand its reach in consumer lending. 

"All this together actually brings our capability to the next level when it comes to financial services," Oey, adding that the deal would be accretive to the business and contributed to Grab raising its 2028 outlook.

Atome works with brands across travel, beauty and e-commerce, giving Grab access to areas where it has a more limited presence, Oey said. 

The transaction is expected to close next year, meaning Atome's contribution will be more meaningful toward the latter part of that year and into 2028, he said. Grab expects its financial services segment to generate $500 million in adjusted EBITDA by 2028.

Grab plans to retain Atome's management team, while the period between the two stages will give the companies time to work on potential synergies, Oey said.

Beyond the Atome deal, Oey pointed to micro-investing as another potential opportunity in Southeast Asia. Access to fair credit in Southeast Asia is an area where the company wants to work with regulators, he said.