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William Shakespeare might be a bit lost if we went back in time and asked him about Traveloka’s IPO prospects.
However, as with almost all matters, there’s a phrase from The Bard that fits: Discretion is the better part of valor.
The Indonesian travel tech unicorn looked all set to go public in 2021, but that deal fell through. In hindsight, that was probably a blessing in disguise since the stock prices of other Southeast Asian firms that went public three years ago have plunged.
Traveloka seems to be in better shape now for a listing, though it’s uncertain whether it’s going down that road. Today’s featured story analyzes what the company’s latest moves mean.
Today we look at:
- To go public or not, that is the question for Traveloka
- Elon Musk could be in line to snap up TikTok’s US operations
- Other newsy highlights such as Indonesian AI digital character firm Byten getting seed funding and WeWork India securing US$57.7 million to pay off debts.
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Traveling down the IPO path?
Image credit: Timmy Loen
In April 2021, Traveloka appeared to be on course to go public via a SPAC deal. But by the end of that year, it had canceled its IPO plans.
The firm remains private today, but it could be in a better position to make its stock market debut in the near future.
- Sitting pretty: While other Southeast Asian tech giants like Grab and GoTo have yet to hit net profit even after their IPOs, Traveloka reached the milestone in 2023. Mark Bruny, CFO of Indonesian agritech firm Koltiva, told Tech in Asia that this gives Traveloka “the luxury of deciding if or when” to go public.
- What’s the deal with this loan?: Curiously, Traveloka recently repaid a US$300 million loan two years ahead of the deadline to do so. What’s behind the move? Analysts say the company could be gearing up for a listing, cutting costs, or ending a project.
- In TikTok’s sights?: One avenue Traveloka may consider is an acquisition. Short-form video app TikTok previously denied rumors it was interested in snapping up the traveltech company. While there would be synergy between these firms, it’s unclear whether Indonesia could stomach another foreign entity buying a local tech unicorn after last year’s TikTok Shop-Tokopedia deal.
Read more: Behind Traveloka’s $300m loan payback puzzle
Elon to the rescue?
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