From startup to IDX IPO, Passpod serves Indonesia's outbound travellers
By Digital News Asia October 29, 2018
- Becomes first startup from IDX Incubator to launch IPO on Indonesian Stock Exchange
- A wi-fi modem rental service and travel assistance for Indonesian travelers overseas
PT Yelooo Integra Datanet Tbk. (Passpod) officially lists its shares on the Indonesia Stock Exchange (IDX) today with the ticker symbol YELO. With this listing, YELO becomes the 46th issuer in 2018, as well as the first startup built by the IDX Incubator to take part in the IDX.
Initiated by the IDX and Indonesia Financial Services Authority (OJK), the IDX Incubator serves to help develop startups in Indonesia in terms of business, legal, and funding to allow them to list on the stock exchange. Passpod has been in the program since February 2018.
Passpod CEO Hiro Whardana hopes that the move can inspire other startups to continue to take note of various funding options. "One of the lessons learnt at IDX Incubator is not to wait for large growth before launching an IPO, as an IPO may actually help grow startups," said Hiro.
The initial listing was welcomed by the public, where demand for Passpod shares was oversubscribed by more than 10.27 times. Passpod had appointed PT Sinarmas Sekuritas as guarantor for the stock issuance and PT Jasa Utama Capital and PT Erdikha Elit Sekuritas as underwriters.
A total of 130 million new shares were released by Passpod, or some 34.21 percent of the issued capital. Funds generated by the IPO will be used for business development, research & development as well as additional various features and working capital.
Passpod is a wifi modem rental service company and travel assistance for Indonesian travelers abroad. Passpod has three business segments, namely travel services, AI & big data, and global connectivity. As of April 2018, Passpod recorded Rp 475 million in net profit in the current period. The figure represents a dramatic rise from the Rp 26.5 million secured in the same period the previous year.
According to Hero, the performance justifies the business segments the company believes can provide a variety of relevant solutions to current travel trends. "The number of Indonesian outbound travelers will continue to grow, and is predicted to reach 10.6 million people in 2021. By maximizing the potential for big data, the Passpod business can provide maximum services and various recommendations to Indonesian travelers not only during preparation but also during the trip. Some of these include ticket sales on-the-spot tourist destinations, itinerary builders, e-commerce, travel insurance and many others.”
Hiro also acknowledged that the IPO was the first step in developing the Passpod business overseas. "In addition to funding needs, when it comes to engaging with stakeholders and business partners in other countries, public companies that prioritize accountability, transparency and good governance will certainly be more trusted," said Hiro.
Passpod’s business expansion to countries in Southeast Asia, namely Malaysia, Singapore, Vietnam, Myanmar as well South Korea, aims to attract tourists from abroad to Indonesia. Passpod Operations and Finance Director Wewy Suwanto said, "Passpod, which can now be used in 70 countries and target outbound travelers, certainly does not rule out the future possibility that coverage will also include foreign tourists who want to travel to Indonesia (inbound travelers) as part of the support for Ministry of Tourism programs.
To achieve such a goal, the company has secured Postel A & B and domestic content certification (TKDN) from the Ministry of Industry and the Ministry of Information & Communication. With the permit, Passpod will enjoy more freedom to work on both inbound and outbound markets, whose growth potential is still very large in the future,” added Wewy.
By adding various features to the application, as well as expanding the marketing area, boosting cooperation with more parties from the travel industry, and improving services to consumers, Passpod projects Rp 165 billion in revenue in 2022 and Rp 15.3 billion in net profit, as well as 109.99 percent projected average annual growth (Compound Annual Growth Rate/CAGR) in net income. "From the various strategy pillars, Passpod in 2022 plans to become an on-demand ecosystem based on applications that offer a variety of needs relevant to travelers," said Hiro.