GRAB Holdings was initially published as one of our 7investing Community's New Ideas in September 2024

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Background

The following comes directly from our initial Community recommendation. 7investing's opinions may differ from the person(s) who submitted this community research.

GRAB is a founder led superapp operating in Southeast Asia, founders both graduates from Harvard with Business Administration degrees. GRAB business is to provide delivery services (think Doordash), rideshare services (think Uber) and finance services (think CashApp + buy now pay later). They operate in Singapore, Malasia, Philippines, Thailand, Cambodia, Indonesia, Myanmar, and Vietnam. Malasia, Singapore, and Indonesia represent 35%, 21%, and 19% of revenues, respectively.

The platform has 40.9M MTUs, growing at 17% YoY. Digital wallet revenue is growing at 61% in constant currency YoY. 2024 the company guides to turn cash flow positive for the full year. This company has very powerful network effects. For example, someone ordering a taxi or food is likely to engage in using the finance side of the app, this is casting a wider net to attract new users versus SEA Ltd where they drive users to SeaMoney primary though video game and Shopee marketplace.

Running a DCF model, the current price of $3.20 using (3% terminal growth, 10.5% discount rate) implies 12% Years 1-10 growth. Company is growing 14-17% YoY, a 15% growth rate implies a 24% discount to current price.