Traveloka considers SPAC option as it plans to go public

Traveloka

Traveloka, the Indonesian online travel app unicorn, announced on Monday it has its eyes set on going public and was evaluating a merger with a special purpose acquisition company (SPAC) as a possible listing option, as per a Reuters report.

“A SPAC is one of the options we are evaluating given we have been approached by a few,” Traveloka President Henry Hendrawan said in a statement in response to a Reuters query.

According to the report, a source with knowledge of the matter said Traveloka is still deciding between a conventional IPO or a SPAC and could be valued up to US$6 billion.

Hendrawan had previously shared with Reuters in late 2019 that the platform is considering a possible dual listing in Jakarta and another centre such as the US.

He also shared with media in October that he expected Traveloka to potentially be profitable by 2021.

Also Read: Innovate and go: How Traveloka revamps its services to comply with changing travel behaviour

Traveloka had recently closed a US$250 million funding round in July 2020 from a host of investors including Singapore sovereign wealth fund GIC and East Ventures.

This news comes amidst the growing popularity of SPACs in the region as Indonesian e-commerce giant Tokopedia had announced last week it was considering SPAC as a potential option for their plans to go public.

In an interview with e27, experts commented that the SPAC model that the company is implementing can be “an alternative” way to fundraise for startups in SEA.

“Having seen the more than 100 SPACs emerge in North America earlier this year, we are not surprised to see this new SPAC coming out to focus on Southeast Asia. We welcome this initiative, which will provide an alternative path to liquidity and access to public markets for one or more rising tech, financial services or media company in the region,” said Sanjay Zimmermann, Senior Associate at White Star Capital.