Aug 15 Reuters Grab Holdings missed secondquarter revenue estimates due to slower growth in its mainstay fooddelivery business and foreign exchange headwinds, sending its U.S.listed shares down 5 on Thursday.

Growth has been slowing at the Southeast Asian tech company after the pandemicera surge in fooddelivery demand, with Grab laying off 11 of its workforce last year in a major restructuring aimed at narrowing losses.

Sales from the deliveries business its largest grew 11 to 356 million, lower than Visible Alpha estimates of 362.1 million. That compares to growth of 19 in the first quarter, and a doubling of the business in certain quarters of 2023 and 2022.

Rideshare revenue grew a worsethanexpected 14.

Grab took a hit of more than 500 basis points on both revenue and gross merchandise value as Southeast Asian currencies weakened against the U.S. dollar in the recent past, CFO Peter Oey told Reuters.

We39;re very bullish on the business … travel has bounced back strongly, especially after the rainy season here, he said.

The company retained its fullyear revenue forecast of 2.70 billion to 2.75 billion.

Grab, which competes with Gojek, now part of Indonesia39;s GoTo Gojek Tokopedia in February revenue growth will accelerate in the years beyond 2024 as investments in new products bear fruit.

In the quarter ended June 30, revenue rose 17 to 664 million, missing analysts39; estimates of 673.3 million, according to LSEG data.

Adjusted core earnings were 64…