Grab Holdings: Undervalued Leader in Southeast Asia's Super-App Market

Grab Holdings Limited, a super-app in Southeast Asia, is undervalued according to investment thesis. The company dominates the region in mobility, e-commerce, and financial services, with a billion-dollar takeover potential.

Grab Holdings Limited, a leading super-app in Southeast Asia, has recently been recognized for its undervalued status according to investment theses. The company, which operates across mobility, e-commerce, and financial services, is positioned to dominate the region and has a significant takeover potential.

Grab Holdings Limited is a super-app that offers a wide range of services, including food deliveries, mobility solutions, and digital financial services. The company operates in over 700 cities across eight countries in Southeast Asia, including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Its application enables users to access services such as ride-hailing, food and grocery deliveries, package sending, online payments, and financial services like lending and insurance [2].

The company's recent second-quarter 2025 earnings report shows a shift to profitability, with net income reaching US$35 million and sales rising to US$819 million. Grab Holdings also completed a share repurchase program totaling 126 million shares for nearly US$500 million, signaling confidence in its financial position and future prospects [3]. Despite these positive developments, the company faces competition in core markets like Vietnam, which could potentially pressure take rates and promotional spending.

A key aspect of Grab's investment narrative is its strategic equity investment in WeRide, a global leader in autonomous driving technology. Grab Holdings has invested in WeRide as part of a robotaxi partnership that aims to address driver shortages in Southeast Asian cities while creating new career opportunities in the AV industry. This partnership focuses on integrating WeRide's autonomous vehicles into Grab's network, optimizing dispatch and routing, and enhancing operational efficiency [1].

The investment in WeRide supports Grab's growth strategy to expand its commercial AV fleet in Southeast Asia and advance AI-driven mobility. By combining WeRide's advanced AV technology with Grab's strengths in ride-hailing and digital services, the partnership aims to accelerate safe, efficient Robotaxi services and enter new markets [1].

While Grab Holdings' outlook anticipates $5.4 billion in revenue and $802.4 million in earnings by 2028, based on annual revenue growth of 20.4%, the company faces competition risks that could add layers of unpredictability to its future results. However, the recent Q2 earnings and share buyback program indicate a strong financial position and a commitment to shareholder value.

References:
[1] https://www.ainvest.com/news/grab-holdings-invests-weride-robotaxi-partnership-2508/
[2] https://www.marketscreener.com/news/weride-says-it-will-receive-equity-investment-from-grab-holdings-as-part-of-robotaxi-partnership-ce7c51dedd88f121
[3] https://simplywall.st/stocks/us/transportation/nasdaq-grab/grab-holdings/news/is-grab-holdings-grab-return-to-profit-and-share-buybacks-sh