Grab, the leading super app in Southeast Asia, announced its financial results for the quarter ended March 31, 2021 on Monday (August 2nd).
“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,” said Peter Oey, CFO of Grab, in a statement.
According to Grab, adjusted net sales hit an all-time high of $ 507 million, up 39 percent year over year, while sales hit a record $ 216 million.
While many Southeast Asian countries are imposing new bans due to a surge in Covid-19 cases, the Singapore-based company cut its losses due to a strong performance in its delivery business.
Strong development in the delivery business
Photo credit: grave
The gross value of goods (GMV) on deliveries from Grab showed a strong year-over-year growth of 49 percent, offset by poor mobility as a result of lockdowns and other restrictions imposed by governments in the wake of the COVID-19 pandemic.
According to the results, Grab saw “strong growth” in shipments in the first quarter of 2021, generating a GMV of $ 1.7 billion. This represents an improvement of 49 percent over its gross value added volume of $ 1.1 billion in the first quarter of 2020.
Adjusted net sales for shipments were $ 293 million, down from $ 144 million, up 96 percent year-over-year, while sales were $ 53 million, an increase of $ 152 million year over year. Adjusted EBITDA for shipments of $ 4 million was $ 147 million higher than the prior year.
This was due to an increase in both the number of transactions processed and the order values.
GrabMart was also further scaled, an offering for the delivery of everyday goods that has expanded to Grab’s eight Southeast Asian markets. In June, the company announced the launch of GrabSupermarket in Singapore as part of a strategic expansion of GrabMart.
Volatility in the ride hailing business
Due to the bans and restrictions imposed in Grab’s various markets, the GMV of mobility in the first quarter of 2021 was approximately 64 percent of the level of the first quarter of 2020.
Mobility-adjusted net revenue was $ 167 million, a decrease of 14 percent year over year, while revenue increased 18 percent year over year to $ 145 million.
Mobility’s adjusted EBITDA was $ 115 million, up $ 34 million from a year ago, and Grab remains positive on segment-adjusted EBITDA in all core markets.
Preparing for a record SPAC deal
The company’s quarterly financial results were the first to release in the run-up to its public listing.
In April of this year, Grab announced that it intends to go public in the United States in partnership with Altimeter Growth Corp (Nasdaq: “AGC”).
It is expected to be the largest ever US equity issue by a Southeast Asian company. The combined company expects its securities to trade on NASDAQ under the symbol “GRAB”.
The proposed transactions value Grab with an initial pro forma equity value of approximately $ 39.6 billion ($ 53.16 billion) with a PIPE size of more than $ 4.0 billion (5.37 Billion US dollars) and will grab approximately 4.5 billion US dollars (6.04 billion US dollars) in cash.
“We are excited about our progress towards becoming a publicly traded company, which we expect to make in the fourth quarter of 2021,” said Anthony Tan, Group CEO and co-founder of Grab.
With branches in eight countries and more than 400 cities, Grab is the most valuable start-up in the region. It started as a ride-hailing business in 2021 and has since moved into grocery and grocery delivery, digital payments, and insurance and credit business as well.
Photo credit for selected images: Bloomberg