Digitaraya Prepares to be Passpod's Strategic Investor during IPO
Passpod will use 70% of IPO funding for research and development
Prayogo Ryza - 21 September 2018
PT Yeloo Integra Datanet (Passpod) announces its plan to enter Indonesia's Stock Exchange (BEI) by the end of this year. Digitaraya has declared its commitment to support this IPO. The accelerator company, created by Kibar and Google Developer Launchpad, is ready to be Passpod's standby buyer.
Passpod is a startup engaged in portable modem rental for tourists, particularly locals who travel abroad. This company is under IDX Incubator's initial batch which claims to have 58,500 customers per June 2018. Passpod is said to provide 4G access to 68 destinations (outbound).
"The enthusiasm of strategic investors is a form of external validation for Passpod business model. We positioned ourselves as travel assistance during tourists stay abroad, from the internet connection, event tickets, attraction, and others through the app. It is valued as one aspect for strategic investors in making the decision to allocate investment to Passpod," Hiro Whardana, Passpod's CEO, said.
Yansen Kamto, Kibar's Chief Executive, said the investment consideration to invest in Passpod is based on a potential business model and market size. The trend of traveling abroad is growing every year.
Whardana ensured, with some shares allocated to certain investors, it's still proportionally allocated to the retails. "There's no need to worry for retail investors because the opportunity is still open for Passpod shares," he said.
In this IPO, Passpod targets to raise a IDR 40 billion fresh money. Later, 70% of the funding will be used for research and development. One of the plans is to develop technology to facilitate customer's connectivity in more destinations. The rest 30% will be used for business capital.
Currently, Passpod has relied on imported modem devices, however, it has obtained the government-based certification and standard to produce its own devices.
"Through a fairly long process, in May 2018, we obtained and became the only company with TKDN and Postel (Post and Telecommunication) A/B certification," he explained.
– Original article is in Indonesian, translated by Kristin Siagian