BREAKINGVIEWS-Grab's US fintech foray is not as odd as it seems

By Katrina Hamlin

HONG KONG, Feb 12 (Reuters Breakingviews) - It's another step outside of its home market for Grab GRAB.O. The 14-year-old Southeast Asian ride-hailing and deliveries firm on Wednesday announced it will acquire a U.S. fintech startup. That is a bold move for a company that on the same day reported its first full-year net profit and a slightly weaker-than-expected revenue forecast. The acquiror's stock fell 4% in extended trading but there is some logic behind CEO Anthony Tan's deal.

At first glance, buying an AI-driven investing app that doesn't operate in any of Grab's current markets seems odd. Stash Financial offers services such as personalised stock picks to some 1.5 million U.S. subscribers and boasts $5 billion in assets under management. Grab will pay for half of its target's equity upfront at an enterprise value of $425 million, with the rest to follow over three years. Cash-rich Grab is paying partly in paper, which it can do because its shares are traded in New York where it debuted in 2021 through a deal handing it a nearly $40 billion market value.

Yet Stash fits well with its buyer in some ways. The Singapore-based company wants to grow its fledgling financial services business which generated 10% of its revenue in 2025. It's a huge opportunity given some 60% of Southeast Asia's population is unbanked, per specialist advisors Royal Park Partners. As well as providing a source of recurring subscriptions, Stash's AI technology, talent and financial education tools can help Grab to make long-term wealth accessible to swathes of the region's 700 million inhabitants.

Grab is already using data gleaned from its core businesses showing how consumers earn and spend their money to assess financial needs and risks. Through its various banking services in Southeast Asia, Grab’s deposits grew by a third to $1.6 billion last year, while its loan portfolio increased 120% to $1.2 billion. It has also dabbled in investment services, allowing some users to invest in a money market fund.

Doubling down on financial services will also help to shore up growth: Revenue from the division grew 37% in 2025 from a year earlier. And the price doesn't seem excessive: The deal values Stash at 7 times its forecast EBITDA for 2028, far below Robinhood's HOOD.O 15 times.Tan says the company he co-founded remains focused on its home region, but if its new catch keeps growing in the U.S., Grab's investors may not complain.

Follow Katrina Hamlin on Bluesky and LinkedIn.

CONTEXT NEWS

Southeast Asia's Grab on February 11 said it will acquire Stash Financial, a U.S. digital financial services company in a cash and stock deal. Grab will pay for 50.1% of Stash's equity at an enterprise value of $425 million, with payments for the remainder to be made at "the fair market value" over three years.

The company reported net profit of $200 million for the full year 2025 on February 11, its first annual net profit. It forecast 2026 annual revenue between $4.04 billion and $4.10 billion, compared with estimates of $4.13 billion, according to data compiled by LSEG.

Grab's U.S. stock fell 4% in after-hours trading.