Grab Holdings Ltd.

Overview Key strengths Key risks Among the top ride-hailing and food delivery platform operators in Southeast Asia. Geographic footprint focused on Southeast Asia, with limited revenue scale, compared with rated global peers. Strong liquidity to tolerate cash burn until a turnaround in financial performance likely in 2024. Engaged in a highly competitive and nascent industry, with exposure to evolving regulatory risks. Lack of track record of positive earnings and cash flows. We expect Grab's full-year S&P Global Ratings-adjusted EBITDA to turn positive in 2024, and for it to generate positive operating cash flows (OCF) in the same year. We previously expected the latter would not happen until 2025. This revised expectation is on the back of rising gross merchandize value

...Grab Holdings Ltd.'s road to profitability and positive cash flows is clearer and nearer. We expect Grab's full-year S&P Global Ratings-adjusted EBITDA to turn positive in 2024, and for it to generate positive operating cash flows (OCF) in the same year. We previously expected the latter would not happen until 2025. This revised expectation is on the back of rising gross merchandize value (GMV) and take rates, along with declining incentives and a focus on profitability. The company's take rate (revenue as a proportion of GMV) has risen for six consecutive quarters to 10.8% in the second quarter...

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