Broker: Maybank Research Pte Ltd
Date of Report: August 1, 2025

Grab Holdings: Prioritizing Growth with Strategic Investments Amidst Competitive Southeast Asian Markets

Overview: Strong Topline Growth and a Renewed Focus on Expansion

Grab Holdings, a leading Southeast Asian superapp, continues to demonstrate robust growth in the face of macroeconomic softness in emerging ASEAN markets. In the latest quarter, Grab posted impressive gross merchandise value (GMV) growth, maintaining its leadership across delivery, mobility, and financial services. The company is doubling down on its growth strategy, emphasizing affordability and market expansion — even at the expense of near-term margin acceleration. This approach is further supported by bold moves in autonomous vehicle (AV) technology and solid partnerships, opening new monetization avenues for the future.
Key report highlights:

• 2Q25 On-demand GMV growth: 21% YoY, among the highest since the pandemic
• Deliveries GMV: up 22% YoY
• Mobility GMV: up 19% YoY, despite a 4% YoY drop in average trip fare
• Fintech loan book: up 78% YoY, led by GrabFin and Digibank lending
• Adjusted EBITDA: Margins dipped slightly, reflecting aggressive reinvestment for growth

Financial Summary: Key Figures and Performance Metrics

Segment Highlights: Deliveries, Mobility, and Financial Services

Deliveries Segment

• 2Q25 GMV: USD 3,471m (22% YoY growth; 11% QoQ growth)
• Adjusted Net Revenue: USD 439m (23% YoY, 6% QoQ)
• Take Rate: 21.9%
• Adjusted EBITDA: USD 63m (50% YoY growth; flat QoQ)

The deliveries segment continued its strong trajectory, benefiting from increased user adoption and deeper market penetration, especially in smaller cities. The take rate remained stable, underscoring Grab’s ability to maintain pricing discipline amidst reinvestments.

Mobility Segment

• 2Q25 GMV: USD 1,883m (19% YoY, 4% QoQ)
• Adjusted Net Revenue: USD 295m (19% YoY, 5% QoQ)
• Take Rate: 18.8%
• Adjusted EBITDA: USD 164m (27% YoY, 3% QoQ)

Despite a 4% YoY decrease in average trip fare, mobility GMV surged, a testament to Grab’s affordability push and the success of saver offerings. Partner incentives rose, helping to boost driver supply even as competition in the ride-hailing sector intensified.

Financial Services

• Loan Book: USD 708m (78% YoY, 25% QoQ growth)
• Adjusted Net Revenue: USD 84m (40% YoY, 12% QoQ)
• Adjusted EBITDA: Loss of USD 26m (improved 8% YoY, 13% QoQ)

GrabFin and Digibank lending are driving rapid expansion in Grab’s loan book, though upfront provisions for loan losses have kept the segment in the red. Still, the focus on fintech broadens Grab’s ecosystem and cross-selling opportunities.

Strategic Shift: Growth Over Margins

Grab is deliberately emphasizing growth ahead of near-term margin expansion. Key drivers include:

• Introduction of saver offerings in both mobility and delivery to attract new users
• Expansion into smaller cities and less-penetrated regions
• Heightened partner incentives to ensure driver supply and service quality
• Ambitious loan book growth targets for 3Q/4Q (20–25% sequentially)

Operating leverage is expected to gradually improve margins over time, but the current focus is on scaling the user base and ecosystem. This strategy is designed to solidify Grab’s market position and act as a barrier against new entrants, such as Meituan and Didi expanding outside China.

AV Technology: The Next Frontier for Grab

Autonomous vehicles (AV) are a key strategic priority. Grab seeks to lead ASEAN’s AV transition through:

• Hybrid fleets leveraging OEM relationships
• Regional scale and a trusted brand
• Extensive mapping data for operational efficacy
• Active pilots and regulatory collaboration for safe, scalable AV rollout

Early analysis indicates potential annual savings of USD 71m in Singapore by 2030 if AV adoption accelerates, with a ~7% positive impact on net present value (NPV). AV technology could also open up new opportunities in fleet management and depot operations.

Competitive Landscape: Risks and Opportunities

Upside Factors:

• Softer-than-expected competition from new market entrants
• Improved macroeconomic conditions boosting discretionary spending
• Reduction in incentives if driver supply remains ample
• Enhanced cross-vertical ecosystem benefits, especially in financial services
• Potential monetary easing from the US Federal Reserve

Downside Risks:

• Heightened competition, notably from XanhSM in Vietnam and Indonesia
• Increased incentive spending if driver supply tightens
• Reduced on-demand usage if inflation forces price increases
• Softbank Group divestments increasing stock liquidity risks

ESG Profile: Environmental, Social, and Governance Initiatives

Grab has embedded sustainability and social impact at the heart of its business model:

• Environmental: Over 349,986 tonnes of GHG emissions avoided in 2023. 6.3% of all distance traveled used low/zero emission modes. Carbon offset features and eco-friendly packaging initiatives are in place.
• Social: 46% of driver-partners were previously unemployed. The platform actively supports partners with disabilities (3,184 out of a 2025 target of 4,200). Grab enhances price transparency and supports F&B digitization, though commission rates and partner profitability are ongoing concerns.
• Governance: Board has 7 members (5 independent, 2 women). Co-founder Anthony Tan controls 64.1% of voting power despite a 3.9% economic stake. KPMG has been the auditor since 2015.

Quantitative ESG disclosures are robust, but Grab has yet to reach several of its stated targets (e.g., zero packaging waste by 2040, carbon neutrality by 2040). Its overall ESG score is 46, considered above average.

Valuation and Outlook

• Current Share Price: USD 4.89
• 12-month Price Target: USD 5.85 (+20%)
• Market Capitalization: USD 21.4 billion
• Issued Shares: 4,385 million
• Free Float: 38.3%
• Major Shareholders: Uber Technologies (13.9%), SB Investment Advisers (10.5%), Toyota Motor Corp. (5.8%)

Conclusion: Grab Remains a Top Pick for ASEAN Digital Economy Exposure

Grab’s commitment to reinvestment, ecosystem expansion, and technological innovation positions it as a formidable player in the Southeast Asian digital economy. While the current strategy means margin improvement will be more gradual, absolute EBITDA is projected to expand significantly — helping to deter new competition and unlock new streams of value. For investors seeking exposure to Southeast Asia’s tech-enabled growth, Grab offers a compelling, well-diversified play with continued upside potential.

Contact Information

For further insights or queries, please contact Hussaini Saifee, Maybank Research Pte Ltd, Singapore, or refer to the respective regional teams for in-depth sector analysis.