Interesting Things to Look For Before the IPO Grab

At the time, rumors about a debut Grab on the Nasdaq is projected to run smoothly for investors. In April 2021, Grab announced his plans for go public through the merger of SPAC with Altimeter Growth Corp in a deal worth nearly $40 billion.

For those who follow the development of the IPO issue Grab forthcoming — maybe even ready to buy shares when the market opens. There are several things that need to be understood regarding the company's current situation.

Though Grab starting a business as an online transportation application in 2012, the company has grown to become super app bona fide, and has a diversified range of in-app offerings to target emerging sectors of the digital economy, such as logistics, food delivery and financial services.

This initiative seems to be working, looking at the model super app which proved solid. Just imagine, an independent worker (gig worker) only needs a complete body of capital and a mode of transportation to carry out tasks and earn income.

Taxi driver Grab in Indonesia, for example, can take people (ride-hailing), deliver food (GrabFood), delivering groceries (GrabMart), taking deposits from application users (GrabJastip), even helping customers make top-ups (GrabKiosk), all in one day.

When the driver is more productive, the economic unit in the platform will be better. As much 59 percent two-wheeled driver fleet Grab serving passenger and delivery deliveries throughout Southeast Asia.

Optimal working hours and the opportunity to earn higher income are advantages for drivers, therefore, it is easier to keep them in the network Grab.

Status as super app

It's different in the Western Hemisphere, model super app running relatively smoothly in Southeast Asia. Users in the region are mostly already exposed to digital, and most of them use low-capacity Android phones instead of iPhones. Therefore, it is important for them to have one application that can do it all rather than many applications with their respective benefits.

This is also the case in China, although it only has one basic function difference, showing the shortcomings of the messaging system in super app in South East Asia. The use of Facebook's WhatsApp in Indonesia is already too strong, compared to WeChat as a tool super app in China.

There might be another reason why one super app can fit into this fragmented market, one of which is the technology industry which is still relatively young. It is not an easy matter to improve and perfect one service, let alone six or seven.

Companies with a market advantage in one vertical (for example, ride-hailing) can re-invest with their earnings to penetrate other verticals (food delivery and digital payments) and unlock revolving economies of scale.

Interestingly, it makes the user much more comfortable. By linking a credit card account to Grab or a digital wallet app to pay for the return trip, details will automatically be filled in when you want to order dinner.

In addition, you can also use an existing digital wallet, no longer need to carry a physical wallet anywhere. With a successful integration like this, the experience for digitally savvy consumers (not a problem in Southeast Asia) will be near perfect.

Although still at a loss Grab has a strong track record when it comes to execution. Like when he first entered Indonesia in 2014 as underdog, the company is far behind its local rivals, Gojek, which is already four years ahead. In fact, at this time Grab managed to lead the market travel and food delivery in this country. This app has donated $5,45 billion for the local economy in 2019.

The fact that many of Indonesia's leading conglomerates choose to invest in Grab is proof of their recognition of ability Grab in complex environment navigation with better performance than competitors.

The startup's regional footprint is a key differentiator in an interconnected yet fragmented region like Southeast Asia. Grab is the only player who successfully operates the model super app true in various markets.

This becomes important. Model super app Grab has shown resilience. The service is not dependent on any single market or vertical, which has proven critical for protecting companies even during periods of crisis such as the pandemic. This puts the company in a solid position to capture growth opportunities across the region.

Menurut report e-Conomy SEA 2021, core markets in Southeast Asia are expected to experience double-digit growth from now to 2025, led by the Philippines and Vietnam. With a successful history of localization Grab proven, the company is also expected to win the Philippines and Vietnam markets.

The complexities of Southeast Asia also spill over into the wider political and business environment. Grab also demonstrated its ability to address this by forging strong partnerships with regulators, such as Grab Tech Center in Jakarta.

All of these are clear signals of Grab with its capacity to win over regulators and cultivate a strong working relationship with the state, something essential in a region as politically diverse as Southeast Asia.

There's no secret ingredient to this dish, if you're curious. Grab using a simple formula by trying to be present wherever and whenever to help the government solve problems. For example, the company helps establish a vaccination center in 54 cities throughout Indonesia, even launched drive-through vaccination service to give 5.000 injections per week.

The essence of every startup success story is leadership. From my interactions with the founding members Grab, I can say that Anthony Tan sticks to his deep faith build a strong and intense local team. Leaders Grab have a real and genuine passion for serving the community in which they belong.

Grab have solid fundamentals. With an important mission, c-levels qualified, and a proven track record, the company is ready to grow, especially with a target market dominated by a young population and a growing middle class.

Ahead of the plan Grab expected to list on December 2nd, with possibly the largest company from Southeast Asia to be listed on a US exchange to date, all eyes will be on the region. Amidst the congested list of Southeast Asian companies planning IPOs – this will be good news.

In Indonesia, market debut Grab will no doubt boost the confidence of local unicorns in mapping out their IPO plans. I believe the new era of technology investment has finally arrived, when the local giants are preparing to go public on the Indonesia Stock Exchange.

For global investors who want to enter the pre-IPO stage Grab, form alliances with strong local venture capital firms, ideally with stakes in the public and private sectors.

- Disclosure: This article was written by the CEO of BRI Ventures Nicko Widjaya and first released by e27. Re-released in Indonesian as part of a collaboration with DailySocial