Grab’s SPAC merger values the company at a whopping $40B

Singaporean tech giant Grab has agreed to go public through a SPAC (Special Purpose Acquisition Company) merger. It’ll merge with US-based Altimeter Growth Corp, backed by Altimeter Capital.

According to a report from Reuters, through this deal, the firm would be valued at nearly $40 billion. Because of its varied offerings such as ride-hailing, digital payments, and food delivery, the company’s valuation has doubled in the last 18 months.

The deal also brings a $4 billion-plus investment for Grab under PIPE (private investment in public equity). Altimeter Capital is leading that front with a $750 million contribution; other investors include BlackRock, Fidelity International, Janus Henderson Investors, and Temasek Holdings.

SPAC mergers seem to be a hot choice for companies to go public this year. A recent WSJ report noted that in the US, 306 SPACs have raised more than $99 billion just this year — which has already exceeded last year’s $83 million milestone.

Bloomberg noted that southeast Asian startups are aiming to get listed on NASDAQ through a SPAC merger or a traditional IPO. The report said that the Indonesian travel company Traveloka will also follow Grab’s footsteps and opt for a SPAC merger that will value it at $5 billion. 

Grab, which operates in nine countries, said that it expects its addressable market to grow from $52 billion in 2020 to $180 billion by 2025.