Guest Post by: The Big Fat Whale
UPDATE (24th Dec 21): Grab has the intention to acquire Jaya Grocers which is at a premium but it could be a good move to establish positive cash flows and sustainable earnings. From the influx of 4.5 billion dollars, acquiring profitable businesses that have synergies with their network would be the right path forward in our view.
Grab is very much part of our life if you reside in South East Asia- be it hailing a Grab taxi, ordering food from Grab food, arranging a courier service and now even catering to our insurance and financial needs. They have the title of being the SuperApp in South East Asia.
Recently, they have just launched their stock listing in Nasdaq through the merger with Altimeter Growth Corp which is a special purpose acquisition company (SPAC) valuing the deal at $40 billion. Grab raised $4.5 billion with this merger.
Truth be told, we were never interested in Grab as an investment, especially so with headlines of them losing billions per year plastered through different media outlets. Nonetheless, with this stock listing, we decided to understand the company better and see if a turnaround is in sight.
Grab Business Model
Source: Form 8k- Altimeter Growth Corp
Grab was started in Malaysia as MyTeksi in 2012 and within a span of 9 years, their business has now expanded tremendously to include 4 main categories. They are namely:
- Mobile (Transport)
- Deliveries (Food and Groceries)
- Courier Express
- Financial Services (Fintech)
Their coverage now covers the 8 countries in South East Asia as illustrated from the diagram above.
Click Here to Read More:
https://thebigfatwhale.com/is-grab-a-worthwhile-investment/