The Singapore unicorn expects its SPAC deal to finalize in Q4 of this year.
Grab, the Southeast Asian unicorn reported a net loss of $988 million for the July-September quarter, increased from a loss of $621 million a year earlier, as increased COVID-19 control measures in the area impacted its core ride-hailing business.
The Singaporean digital tech business, a significant startup in the area, offers ride-hailing, delivery, and banking services through what it calls a “superapp” approach.
Singapore, Malaysia, Indonesia, Vietnam, Thailand, the Philippines, Cambodia, and Myanmar are among the countries it operates.
On Thursday, Grab also stated that its proposed merger with a particular purpose acquisition company, Altimeter Growth Corp., located in the United States, “continues to advance and is slated to complete in the fourth quarter of 2021.”
The deal values Grab at roughly $40 billion and allow the business to be listed on the Nasdaq.
Grab said noncash expenditures such as accrued interest, stock-based compensation, and fair value fluctuations on assets account for a substantial portion of the massive loss for the quarter.
However, several Southeast Asian countries took severe restrictions to control coronavirus spread during the three months through September, creating a “difficult operating environment,” Grab said in a statement.
According to the company, revenue fell 9% to $157 million in the third quarter “as a result of the predicted fall in mobility owing to the severe lockdowns in Vietnam,” according to the company.
Revenue from the ride-hailing business fell 26% to $88 million, while revenue from the delivery business increased 58% year on year to $49 million.
Financial services revenue, such as its e-wallet, climbed 11% to $14 million.
The accounting revenue for Grab is shown net of incentives for drivers, retailers, and customers.
Consumer incentives more than quadrupled to $271 million in the third quarter, indicating a competitive business climate in the region.
Due to its delivery and banking services growth, its gross merchandise value (the entire value of transactions completed through Grab’s platform) climbed 32% to $4 billion in the quarter.
“Despite severe lockdowns in Vietnam and heightened limitations across the region in the third quarter as a result of COVID-19, we performed successfully on our superapp strategy and produced excellent growth,” said CEO Anthony Tan in a statement.
“With a recovery insight and the progressive reopening of economies giving tailwinds to our company, we are doubling down on investments that will help us grab a larger part of the possibilities before us and open up new addressable markets for Grab, such as grocery.”
Separately, Tan stated during an investor webcast that the firm anticipates a significant rebound in the ride-hailing sector in the fourth quarter, particularly in Indonesia, Malaysia, and Vietnam, as vaccination rates rise in the area.