Seize Narrows Losses on Robust Delivery and Transportation Demand; Stocks jump the most since listing

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Grab Holdings – led by tycoon Anthony Tan – cut losses in the first quarter as demand for its transportation and delivery services surged after governments in Southeast Asia lifted Covid-19 restrictions .

The Singapore-based company said late Thursday that its net loss narrowed to $435 million in the three months to March 31 from $666 million a year earlier, while revenue rose 6 % to $228 million as Grab booked early contributions from Malaysian grocery chain Jaya Grocer, which it acquired in January.

“We’ve seen strong delivery revenue growth by expanding our selection of merchants to give users more reasons to choose Grab,” Tan, co-founder and CEO of Grab Group, said in a statement. “Our mobility business has also rebounded and we expect it to gradually recover as Covid restrictions ease further and our active driver base grows.”

The shares to grab jumped 24% to close at $3.14 in New York, the most since debuting on the market six months ago. Despite the overnight rally, the stock is still down more than 70% from its intraday high of $13.59 when it began trading on December 2, as investors wonder when Southeast Asia’s super app will become profitable.

“We are optimistic that our business will continue to strengthen as more countries pivot to live with Covid-19,” Tan told analysts on a quarterly earnings call. “Going forward, we are focused on achieving our profitability targets and sustainable growth.”

For the full year, Grab said it expects revenue to grow to between $1.2 billion and $1.3 billion, compared to $675 million in 2021, supported by a 30-35% increase. of the gross value of the goods and the ongoing contributions of Jaya Grocer.

Along with improvements to its delivery and mobility businesses, Grab said its payment platform is gaining momentum with the introduction of the buy-it-now, pay-later service. Grab and its partner Singtel are preparing to launch their digital bank in Singapore in the second half of the year. The duo, in partnership with billionaire Robert Kuok’s Kuok Brothers, also won a digital banking license in Malaysia last month.

“Winning the digital banking license in Malaysia enables us to build a regional digital banking footprint in a cost-effective way,” Tan said. “We plan to leverage the same technology stack for our digital banks in Singapore and Malaysia and our Indonesian banking investment to sustainably expand access to financial services across the region.”

Co-founded in 2012 by Tan and Tan Hooi Ling as an Uber-like taxi booking app, Grab has since grown into a super app by expanding into ride-sharing, food delivery and digital financial services, earning to the Southeast Asian startup comparisons with DoorDash and PayPal. The self-proclaimed “everything everyday” app works in more than 400 cities and towns across Southeast Asia, including Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand and Vietnam.

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