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Teleport is raising US$50 million as pre-initial public offering growth capital to accelerate the expansion of its cross-border e-commerce logistics model globally
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It signed on January 22 a subscription agreement with funds managed by HPS Investment Partners for the issuance of redeemable convertible perpetual securities
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This raise values Teleport at $500 million pre-money and allows it to strengthen its balance sheet and fund network growth with its key partner airlines, ahead of a future public listing
Teleport is raising US$50 million as pre-initial public offering (IPO) growth capital to accelerate the expansion of its cross-border e-commerce logistics model globally.
The company in a statement said it signed on January 22 a subscription agreement with funds managed by HPS Investment Partners, a global alternative investment firm, for the issuance of redeemable convertible perpetual securities (RCPS) for the target amount.
This raise values Teleport, the logistics arm of Malaysia-based Capital A Berhad, at $500 million pre-money and will accelerate the expansion of its cross-border e-commerce model globally.
Teleport said this capital raise allows it to strengthen its balance sheet and fund network growth with its key partner airlines, ahead of a future public listing. Altogether, the company has raised approximately $109 million since inception in 2018.
Teleport noted that its updated valuation from HPS “is a strong validation for Capital A and the various AirAsia airlines, who have supported the build of Teleport since its inception eight years ago.”
Pete Chareonwongsak, chief executive officer of Teleport, said, “We are happy to welcome HPS in our next stage of growth to scale our unique ‘asset-light’ model for cross border eCommerce to reach further into key global markets, specifically targeting high-growth eCommerce corridors between China, the rest of Asia, Middle East and beyond. We appreciate the trust and confidence that HPS has placed in Teleport by investing in our journey towards an IPO.”
Moreover, Teleport said this “increased institutional confidence in Teleport’s model demonstrates the commercial viability and sustainability of its unique model, as Southeast Asia’s integrated eCommerce logistics specialist.”
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Since it was founded, Teleport said it has scaled its infrastructure and asset-light Teleport Network to rank first within Southeast Asia, 9th in Asia, and 13th globally by volume.
“I am thankful to all 729 Teleporters who have worked above and beyond these past eight years. Together, we built Teleport uniquely, against many industry norms, which was not easy but the team persevered – alongside Allstars notably from AirAsia, ADE (Asia Digital Engineering) and GTR (Ground Team Red), each of whom are an integral support to Teleport’s operations and success, a true show of strength from within the Capital A ecosystem,” Chareonwongsak said.
“The Teleport model has proven itself in more ways than one and we are still ahead of the curve. Today, we have only captured 1% of a USD28 billion Total Addressable Market for China and Southeast Asia air cargo and cross-border eCommerce,” he added.
Teleport’s unique model, anchored on an asset-light air network infrastructure, allows it to deliver cross-border e-commerce at marginal cost.
The Teleport Network has the most direct point-to-point connections – reaching over 290 capital and smaller cities across 80 countries in Asia Pacific; connecting over 50 partner airlines. It is further enabled by technology, from first to last mile, built to continuously move e-commerce faster, cheaper, better.
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For his part, Capital A chief executive officer Tony Fernandes said, “This investment is a clear vindication of our strategy and innovative approach. I am thrilled that Teleport has evolved into a leading cargo and logistics provider globally, ranked among the top players in Asia. Our unwavering support for Teleport and belief in its potential have directly resulted in this significant capital raising. This partnership is immensely beneficial to the AirAsia airlines, to work with a dedicated partner to maximise our belly space and network utilisation.”
He added, “This updated valuation represents an unrealised return of over 100-fold for Capital A, and positions Teleport well for a future IPO. This is a clear win for our shareholders, delivering significant returns, and this strategy will continue as we actively look for growth capital for other Capital A companies.”
The completion of the issuance of RCPS by Teleport is subject to the satisfaction or waiver of the conditions precedent as set out in the subscription agreement. BNP Paribas and Milbank acted as financial advisor and legal counsel respectively to Teleport, while Latham & Watkins acted as legal counsel to HPS.
