Image credit: Grab

Brief: Food delivery app Grab said to target US listing in biggest ever SPAC deal

April 7, 2021

  • Southeast Asian decacorn Grab is mulling a merger with a New York-listed special purpose acquisition company (SPAC) operated by Silicon Valley investment firm Altimeter Capital Management, the Financial Times reports.
  • Singapore-headquartered Grab would simultaneously raise at least $2.5 billion through a private investment in public equity (PIPE) transaction, which would make the potential merger the largest SPAC deal on record.
  • The proposed deal values the SoftBank-backed app at around $35 billion and could complete as soon as this week, according to people familiar with the matter. 

Why it matters:

Grab — which offers myriad services including restaurant and grocery delivery, digital payments, and ride-hailing across Southeast Asia — was until recently expected to merge with its Jakarta-headquartered rival Gojek. However, the Indonesian app has since opened merger talks with compatriot Tokopedia.

At the start of this year, Grab president Ming Maa said in a newsletter that while the company’s flagship ride-hailing business had suffered since the onset of Covid-19, Q3 2020 revenue from GrabFood — its on-demand meal delivery offering — almost tripled year-on-year. It also doubled the number of merchants on its platform, with close to 600,000 vendors across the region now selling food through the Grab app.

Altimeter has established two SPACs; of the two, Altimeter Growth Corp I, which raised $450 million when it listed last year, is seen as the most likely candidate for a combination with Grab.

The app has raised an estimated $12 billion in venture funding since launching as a taxi-booking service in Malaysia back in 2012.

Join the Newsletter

Get the latest news & research from AFN and AgFunder in your inbox.

Share on email
Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on whatsapp
Share on skype
Join the Newsletter
Get the latest news and research from AFN & AgFunder in your inbox.

Follow us:

Join Newsletter