Ryde Appoints SAC Capital In Preparation For Singapore Catalist Listing The platform aims to capture 30 per cent of the ride-hailing market in Singapore by 2023
By Prabhjeet Bhatla •
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Singapore-based mobility app company Ryde has announced on Monday to have appointed SAC Capital as its financial adviser to lead preparations ahead of a planned IPO on the Singapore Exchange (SGX).
The company aims to capture 30 percent of the ride-hailing market in Singapore by 2023. In a significant move to symbolize Ryde's ambition to give back to drivers, part of the IPO could include plans for its top drivers to receive bonuses and shares upon the completion of its IPO.
"We aim to be the first profitable ride-hailing technology company to list on the SGX. We have engaged SAC in this exercise in view of their expertise in the Singapore markets," said Terence Zou, founder, and chief executive officer, Ryde. "We look forward to accessing the capital markets to fund our expansion. An IPO listing will allow retail investors and our loyal users the opportunity to participate in our exciting journey of growth to be the premier mobility player in Singapore."
Ryde's IPO is slated for 2022, where the company is targeting a S$200 million valuation through a listing on SGX's sponsor-supervised listing platform Catalist.
The company turned profitable in Q4 2020 as gross transaction value (GTV) increased four times during the pandemic. The company has seen over 30 percent year-on-year growth of users on its platform during this time, underscoring a shift in consumer sentiments and preferences for an alternative ride-hailing option in Singapore.
"A significant portion of the IPO proceeds will be invested in technology, product development, and enhancing our operations. We intend to recruit 100 more staff in engineering, design, operations, and digital marketing over the next three years to enhance our capabilities. We will continue to innovate with technology to bring new features to our users." added Zou.
Ryde presently counts over 10,000 monthly active drivers in their network; it sees continuous growth in drivers and passenger sign-ups as more users seek alternatives to incumbents.
To date, the platform has facilitated over 16 million bookings, and its app has been downloaded close to 700,000 times.
The company is targeting to hit S$120 million of GTV from both ride-hailing and delivery verticals in 2021.
"We are excited to be part of this journey to support Ryde, an inspiring home-grown technology innovator, in bringing the company to the next stage of growth. It is heartening to see that Ryde has chosen to list in its home country, and the Catalist is a perfect platform for fast-growing local companies like Ryde. We have confidence in the management and Terence's leadership, and we look forward to guiding the company on the right path to a successful IPO," explained Ong Hwee Li, chief executive officer, SAC Capital.
The company is looking to grow its quick commerce vertical, RydeSEND, on the back of increased demand for delivery post-pandemic. The service can be used by corporates, restaurants, home businesses, and individuals for on-demand delivery services. The company plans to expand this vertical to include "same day' delivery for more competitive pricing.
