SINGAPORE's Grab raised its annual revenue forecast on Tuesday, betting on stronger demand for its ride-hailing and delivery services, helped by promotional offers and platform expansion efforts by the company.

Shares of the Nasdaq-listed company, down over 26% so far this year, rose more than 3% in extended trading.

Grab, the biggest ride-hailing and delivery firm in Southeast Asia, also announced a new $750 million share buyback program.

The company has banked on features such as order bundling and a budget-friendly service tier called "Saver" to drive demand in its core ride-hailing and delivery businesses, aiming to win over cost-conscious consumers grappling with higher fuel prices following the Iran war.

The company is also rapidly scaling its grocery delivery operations - one of its fast-growing segments -and financial services business by building out its loan and insurance offerings for riders and merchants on its platform.

Grab now expects total revenue of between $4.10 billion and $4.15 billion for 2026, compared with its prior projection of $4.04 billion to $4.10 billion. Analysts on average expect annual revenue of $4.12 billion, according to data compiled by LSEG.

It reported total revenue of $997 million in the second quarter ended June, up 22% from a year earlier, and above analysts' estimate of $990.8 million. - Reuters