Addressing extreme poverty remains a key challenge for development in Bangladesh. BRAC initiated the “Challenging the Frontiers of Poverty Reduction” (CFPR) programme—a grant-based approach to tackle extreme poverty. This study provides an assessment of the cogency of this grant-based programme using a RCT design. We found that the grant-based approach of the programme positively influenced the livelihoods of the participants and their households in the short-term including increasing their income and reducing multifaceted vulnerabilities. This paper suggests that through the CFPR approach investment for the extreme poor may better help them by creating pathways out of abject poverty.