Grab is a powerhouse in Southeast Asia, with impressive financial growth and a growing net worth.
At Ando Money, I aim to break down Grab net worth, from revenue growth to its segment contributions. Let’s explore how this giant is making waves in 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Grab Holdings Limited |
| Full Name | Grab Holdings Limited |
| Website | Grab |
| Industry | Technology |
| Traded as | NASDAQ: GRAB |
| ISIN | KYG4124C1096 |
| Founded | 2012 |
| Founders | Anthony Tan, Tan Hooi Ling |
| Country/Territory | Southeast Asia |
| Headquarters | Singapore |
| Chief Executive Officer | Anthony Tan |
| Number of Employees | 12,005 |
| Market Cap | $14.65 billion |
| Total Assets | $8.47 billion |
| Total Equity | $6.34 billion |
| Revenue | $664 million (Q2 2024) |
| Net Income | – $68 million (Q2 2024) |
What is the Net Worth/Market Cap of Grab in 2024?
As of 2024, Grab’s market cap stands at $14.65 billion, positioning it as one of Southeast Asia’s top companies.
Compared to other well-known brands, this valuation reflects strong financial growth despite operating losses. While Grab’s net worth is notable, here are some other companies closely related to it:
- Gojek
- Uber
- SEA Limited
- Foodpanda
- Ant Group
- GoTo Group
- PayPal
- Tencent
- Alibaba Group
- ByteDance
Grab’s valuation showcases its growing impact within the tech industry. For more insights into financially thriving giants, check out this list of the wealthiest companies.
Grab Financial Performance Overview
Revenue Growth and Financial Highlights
Grab’s revenue in Q2 2024 saw an impressive YoY increase of 17% to reach $664 million. On a constant currency basis, the growth was 23%.
With this upward trajectory, Grab is well on its way to achieving its full-year revenue target between $2.70 billion – $2.75 billion.
These numbers signify strong growth and development across all business segments.
The company is also seeing gains in user engagement, with an average of 40.9 million Monthly Transacting Users (MTUs), a 17% YoY increase.
Deliveries Segment: A Major Revenue Contributor
The deliveries segment is a significant driver of Grab’s revenue. In Q2 2024, the segment brought in $356 million, marking an 11% YoY growth.
This performance was driven largely by increased demand in food deliveries and the growth of other verticals such as groceries.
To maximize profitability, Grab also enhanced its advertising and cost efficiency, contributing to the overall performance.
The Gross Merchandise Value (GMV) for deliveries was reported at $2.85 billion, which indicates a 14% YoY growth on a constant currency basis.
Mobility Segment and Its Impact on Financial Health
Grab’s mobility services, another major revenue stream, also reported strong performance. In Q2 2024, revenue from the mobility segment was $247 million, showing a 19% YoY increase.
The segment’s growth was primarily due to increased MTUs and more frequent transactions per user.
Mobility GMV reached $1.58 billion, growing 20% YoY, with an emphasis on introducing new offerings like Saver rides.
This service has seen positive traction, improving user engagement and broadening the company’s user base.
Financial Services Segment: Lending and Digital Banking
Grab’s financial services segment saw significant growth, with its loan portfolio increasing by 71% YoY to $397 million in Q2 2024.
The financial services revenue grew by 54% YoY to reach $60 million. Contributing factors include higher contributions from lending (through GrabFin and Digibank) and greater monetization opportunities.
The company has been focused on lending to ecosystem partners and expanding its digital banking services, with customer deposits increasing to $730 million in Q2 2024, up from $33 million the previous year.
Adjusted EBITDA and Operating Metrics
Grab’s efforts to improve profitability are evident in its Adjusted EBITDA.
In Q2 2024, the company reported $64 million in Adjusted EBITDA, a substantial improvement from the negative $17 million seen the previous year.
Regional corporate costs have also decreased, enhancing profitability. The continued growth of Grab’s On-Demand GMV and revenue showcases how the company is effectively balancing expansion with operational efficiency.
Cash Flow and Liquidity Management
Positive free cash flow is essential for sustained growth, and Grab has demonstrated progress in this area.
In Q2 2024, the company reported $36 million in Adjusted Free Cash Flow, an improvement from the previous negative figure.
Cash liquidity totaled $5.6 billion, reflecting a robust financial foundation. This strong liquidity position can be attributed to growth in banking deposits and strategic cost management.
Strategies for Driving Revenue and Cost Efficiency
To further drive profitability and user engagement, Grab has implemented several initiatives.
For instance, the adoption of Saver deliveries offers users lower delivery fees, enhancing cross-usage of Grab’s services.
The company has also reduced incentives, focusing on lowering costs while maintaining growth.
By optimizing its product offerings and cost structures, Grab is on a path toward long-term sustainable growth.
Shareholder Initiatives and Financial Outlook
Grab has been proactive in improving its financial standing through a share repurchase program.
The repurchase of 9.6 million shares for $34.6 million as part of a $500 million buyback plan reflects a commitment to enhancing shareholder value.
For the rest of 2024, Grab aims to achieve positive Adjusted Free Cash Flow and expects its revenue to grow steadily in line with its previously announced targets.
FAQs About Grab
What business segments drive Grab’s revenue?
Its revenue is primarily driven by three key segments: Deliveries, Mobility, and Financial Services. Each of these segments has shown significant growth in the latest quarter.
How has Grab’s revenue grown in recent quarters?
In Q2 2024, Grab reported a revenue of $664 million, showing a 17% YoY growth. This increase is attributed to rising demand across all segments.
What is Grab’s cash liquidity position?
As of Q2 2024, Grab’s cash liquidity stands at $5.6 billion. This financial strength allows for operational stability and growth in its banking business.
How does Grab’s financial services segment perform?
Its financial services segment experienced a 54% YoY growth in revenue in Q2 2024, reaching $60 million. The loan portfolio grew by 71% YoY to $397 million.
What are Grab’s revenue projections for 2024?
It has projected its full-year 2024 revenue to be between $2.70 billion – $2.75 billion, indicating a 14% – 17% YoY growth. The company also aims to achieve positive Adjusted Free Cash Flow.
Conclusion
As Grab continues to strengthen its financial performance, there’s much to explore in how this company drives growth.
I encourage readers to leave comments, share their thoughts, or read more content on Ando Money.
