Southeast Asia’s leading super app Grab announced on Monday (Aug 2) its financial results for the quarter ended March 31, 2021.
“We exceeded our internal targets for Adjusted Net Sales and Adjusted EBITDA for the first quarter of 2021, and continued the strong growth momentum of our delivery business,” Peter Oey, Grab’s Chief Financial Officer, said in a statement.
According to Grab, its adjusted net sales reached an all-time high of $ 507 million, an increase of 39 percent year-over-year, while revenue reached a record high of $ 216 million.
While many Southeast Asian countries are imposing new closures due to a spike in Covid-19 cases, the Singapore-based firm cut its losses thanks to strong performance in its delivery business.
Strong performance in the delivery business
The gross merchandise value (GMV) of Grab’s deliveries showed strong year-on-year growth of 49 percent, offset by weakness in mobility as a result of lockdowns and other restrictions imposed by governments in the wake of the COVID-19 pandemic. 19.
According to the results, Grab experienced “strong growth” in deliveries during the first quarter of 2021, generating a GMV of US $ 1.7 billion. This represents a 49 percent improvement over its GMV of US $ 1.1 billion in the first quarter of 2020.
Its net sales adjusted for deliveries were $ 293 million, down from $ 144 million and 96 percent year-over-year, while revenue was $ 53 million, an increase of $ 152 million year-over-year. . Your deliveries Adjusted EBITDA of US $ 4 million increased by US $ 147 million year-over-year.
This was driven by an increase in both the number of transactions processed and the value of orders.
It also continued to expand GrabMart, an everyday product delivery offering that has expanded to all eight of Grab’s Southeast Asian markets. In June, it announced the launch of GrabSupermarket in Singapore as part of a strategic expansion for GrabMart.
Volatility in the shared transport business
Due to lockdowns and restrictions imposed on Grab’s various markets, GMV mobility in Q1 2021 accounted for approximately 64 percent of Q1 2020 levels.
Mobility Adjusted Net Sales were $ 167 million, a decrease of 14 percent year-over-year, while revenue increased 18 percent year-over-year to $ 145 million.
Mobility-adjusted EBITDA was US $ 115 million, an increase of US $ 34 million year-over-year, and Grab continues to be positive on segment-adjusted EBITDA in all of its major markets.
Preparing for a record SPAC deal
The company’s quarterly financial results were the first it reported as it prepared to go public.
In April this year, Grab announced its intention to go public in the United States in association with Altimeter Growth Corp (Nasdaq: “AGC”).
It is expected to be the largest US equity offering ever made by a Southeast Asian company. The combined company expects its securities to be traded on the NASDAQ under the symbol “GRAB.”
The proposed transactions value Grab at an initial pro forma equity value of approximately US $ 39.6 billion (S $ 53.16 billion) with a PIPE size of more than US $ 4.0 billion (S $ 5, 37 billion) and will provide Grab with approximately US $ 4.5 billion (S $ 6.04 billion) in cash revenue.
“We are pleased with our progress to become a publicly traded company, which we expect will occur in the fourth quarter of 2021,” said Anthony Tan, group CEO and co-founder of Grab.
With operations in eight countries and more than 400 cities, Grab is the most valuable start-up in the region. It started as a ride-sharing business in 2021 and has since moved into food and grocery deliveries, digital payments, and is also moving forward in the insurance and loan business.
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