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Cambodia: Grab quarterly revenues grow on heightened food delivery demand
Grab Holdings Inc – poised to become the most valuable Southeast Asian tech unicorn to go public on the NASDAQ later this year – reported stronger-than-expected revenue last quarter on the back of its food delivery service.
The company announced in June that it would delay its initial public offering to the fourth quarter in light of increased demands from the US Securities and Exchange Commission after it reached a reverse merger deal with Altimeter Growth Corp. Special purpose acquisition firms are facing increased scrutiny from US regulators after reverse mergers reached an all-time high last year.
The Singapore-based “super-app” is best known for the ride-hailing service it operates in 400 cities across eight countries, including Cambodia. It acquired Uber Technologies Inc’s Southeast Asian division in 2018, pushing that company out of the region.
“We’re pleased by the team’s execution and the growth and resilience of Grab’s diversified business model in Q1,” said Brad Gerstner, founder and chief executive officer (CEO) of Altimeter Capital. “Altimeter is thrilled to support Grab as a long-term partner in their journey to become a public company, so they can continue to meet the needs of millions of people in Southeast Asia.”
The disclosure marks Grab’s first quarterly financial results since it announced the $9.5 billion deal with Altimeter, including a $4 billion private investment that valued the company at $40 billion. Grab’s total net revenue for the second quarter rose by 39 percent to $507 million.
The company said that it anticipates that demand for its mobility services, which saw revenue growth of 18 percent year-on-year to $145 million, will slow amidst new restrictions addressing the resurgence of Coronavirus cases and the emergence of the Delta variant.
The company recorded $53 million in deliveries revenue and $8 million from financial services.
Grab does not offer financial services like lending or digital payments to the Cambodian market but does offers insurance to its drivers, according to sources familiar with the matter.
That segment is considered to be one of the most lucrative aspects of the company’s business.
Grab also provided an update on what its post-merger board will look like. Hooi Ling Tan, its cofounder and Zillow CEO Richard Barton will join, along with an unnamed director from Altimeter Growth.
They will replace members from SoftBank Group Corp and Toyota Motors Corp who have other investments in the region and may have conflicts of interest.
Uber Technologies CEO Dara Khosrowshah will remain on the board. The firm acquired a 27.5 percent stake in Grab when it was bought but its ownership is believed to have been diluted in recent years.
Source: https://www.khmertimeskh.com/50911762/grab-quarterly-revenues-grow-on-heightened-food-delivery-demand/