SE Asia's biggest travel app plans regional fintech expansion before 2021 listing

MoneyHero

25/02/2021 05:30

By Fanny Potkin and Anshuman Daga
    SINGAPORE, Feb 25 (Reuters) - Traveloka, Southeast Asia's
largest online travel startup, plans to launch financial
services in Thailand and Vietnam as it eyes a U.S. listing
through a blank-cheque company, its president said.
    The 9-year-old Indonesian company, which counts Expedia
 EXPE.O  and China's JD.com  9618.HK  among its backers, is
seeing a strong rebound in its business after the COVID-19
pandemic pummelled demand.
    The company's president, Caesar Indra, told Reuters in an
interview that Traveloka's Vietnam business had surpassed
pre-COVID-19 levels, is nearly back to normal levels in
Thailand, and is at half of pre-COVID level in Indonesia. "The
worst has happened and now we're well prepared for 2021.
Domestic travel is driving recovery," he said.
    "The plan is to invest in fintech in a big way to allow more
consumers to travel in the region," Indra said, adding that the
travel business had returned to profitability in late 2020.
    Traveloka, which says it has 40 million active monthly
users, is developing "buy now, pay later" services for Thailand
and Vietnam markets.
    "We recently formed a joint venture with one of the largest
banks in Thailand to collaborate in the fintech space," Indra
said. Traveloka, which has smaller local rivals, is also talking
to potential partners in Vietnam, but Indra declined to name the
parties.
    Traveloka's two-year old equivalent service in Indonesia,
launched after the firm realised that customers would wait until
their paydays to book travel, has already facilitated more than
6 million loans, Indra said.
    Last year, Traveloka launched "Paylater" credit cards with
some Indonesian lenders. It also offers insurance and wealth
management services.
    Indra said the business potential was huge in Indonesia,
Southeast Asia's largest economy, where only 6% of the
population of 270 million has credit cards.
    When asked whether Traveloka might buy a bank in Indonesia,
like other start-ups, to expand its financial services, Indra
said, "all options were on the table."
    Traveloka, also backed by Singapore sovereign wealth fund
GIC and Indonesian venture firm East Ventures, has grown its
local lifestyle services in Indonesia, where it offers
restaurant vouchers and a food delivery service, as well as a
popular rapid COVID-19 testing.
    Indra said the company is Indonesia's largest restaurant
review app. 
    Traveloka, which has been preparing for a listing, is
holding discussions with special-purpose acquisition companies,
or SPACs, for a U.S. listing.
    "U.S. markets have become more appealing because there's
more and more appreciation of Southeast Asia as a flourishing
region, and by listing in the U.S, we can also provide an
opportunity for U.S investors to become part of Southeast Asia's
growth story," Indra said.
    Many SPACs, exchange-listed shell companies that raise money
through IPOs and merge with firms by enticing them with shorter
listing timelines, have approached Southeast Asian startups.
    Bridgetown Holdings  BTWN.O , backed by Asian tycoon Richard
Li, Provident Acquisition  PAQCU.O  and Cova Acquisition
 COVAU.O  are contenders for Traveloka, with a potential
valuation of up to $5 billion for the startup, a source said.
The firms did not immediately respond to requests for comment
made outside normal U.S. business hours.
    Indra declined to comment but said an Indonesian listing
remained an option.

 (Reporting by Fanny Potkin and Anshuman Daga in Singapore.
Editing by Gerry Doyle)
 ((f.potkin@thomsonreuters.com;))