Indonesia’s Cashlez to raise $6.6m in April IPO, buy IT firm

Cashlez Worldwide Indonesia (Cashlez), which provides a mobile point-of-sale service, is planning to raise 100 billion rupiah ($6.6 million) in an initial public offering (IPO) to acquire an IT solution provider.

The startup, which is backed by VC firm Mandiri Sekuritas, will sell 300 million shares equivalent to 20.29 per cent of its enlarged capital at 298-300 rupiah apiece.

“We are a fintech, payment gateway startup that has secured a license from the Central Bank. We believe that this initial public offering will support our business development,” Cashlez CEO Teddy Setiawan said in a statement.

Part of the IPO proceeds will be allocated to acquire a 51 per cent stake in IT solution provider Softorb Technology Indonesia (STI), which is focused on smart card technology and RFID. The remaining part will be used for working capital requirements.

Local brokerage firm Sinarmas Sekuritas will be the underwriter for the IPO.

Founded in 2015, Cashlez claims to have handled transactions worth 3.8 trillion rupiah as of 2019 end. By the end of this year, it aims to reach 10 trillion rupiah in transactions.

Last year, the firm had raised an undisclosed amount in a Series A funding round led by Japanese diversified conglomerate Sumitomo Corporation. Existing investor state-owned CVC Mandiri Capital had also participated in the round.

Cashlez previously secured $2 million in a seed funding round from Mandiri Capital, local investment firm GAN Capital and several individual investors.

The startup is awaiting the approval of Indonesia’s Financial Services Authority (OJK) on April 7 before proceeding with the IPO on April 8. Cashlez will list its shares on the Indonesia Stock Exchange (IDX) on April 20.

Last month, Setiawan told Investor Daily that the company aims to be profitable after at least two years of undertaking the IPO exercise on the acceleration board.

IDX launched an acceleration board in an effort to cater to SMEs. The new board, which was launched in July last year, does not require the startup to have net tangible assets.

Cashlez recorded 11.73 billion rupiah in revenue in the first ten months last year, up 96.07 per cent compared to the corresponding period the year prior. The revenue increase was attributed to a hike in transaction volume.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.