The deal values Teleport at $300 million and is expected to close by end-September this year. Pending final approvals, Delivereat will become a unit of Teleport.
Delivereat founders Shir Mein Leong and Suan Sear Tan will join the management team of AirAsia Digital and Teleport, AirAsia said in a statement. Delivereat was founded in 2012 in Penang by the husband-and-wife team.
Teleport will also onboard several Delivereat investors including venture capital firm Gobi Partners to its management, AirAsia said in a statement.
The deal “strengthens Airasia Digital’s plan to cover the end-to-end logistics chain, from first- to last-mile deliveries,” said AirAsia’s founder and chief executive Tony Fernandes.
Delivereat claims to have delivered over 1 million orders to date and has 4,000 drivers and 4,000 merchants onboard. In August 2019, Aspen (Group) Holdings Limited (Aspen) made a cash investment of $1.19 million in Delivereat. It bagged $450,635 in a Pre-Series A funding round led by Shanghai-based Gobi Partners‘ Gobi MAVCAP ASEAN Superseed Fund in February 2017.
AirAsia launched its own food delivery services in April this year, in search of new revenue streams as the global COVID-19 pandemic continues to cripple the travel and tourism industries. It now has ambitions to become a regional super app,
Besides Malaysia, AirAsia also runs food delivery services in Singapore and Thailand. It told DealStreetAsia earlier this month that it aims to enter Indonesia and the Philippines next.
AirAsia had earlier announced that it will buy Indonesian ride-hailing and payments firm Gojek’s Thailand business in a stock swap, giving Gojek a 4.76% stake worth $50 million in the airline’s lifestyle platform.
In July, Fernandes had said AirAsia is considering a listing of its digital arm via a SPAC merger in the United States to raise at least $300 million.
AirAsia, which is listed on the Malaysian stock exchange, has a market capitalisation of $755 million. Its shares closed 2.94% lower on Wednesday at 0.825 ringgit ($0.19).