Indonesia’s Cashlez seeks to raise $6.6m in March IPO, to buy parking app

Photo: Cashlez Facebook page

Venture capital-backed Cashlez Worldwide Indonesia (Cashlez), which provides a mobile point-of-sale service, is planning to raise 100 billion rupiah ($6.68 million) in an initial public offering (IPO) in March this year, the company confirmed to DealStreetAsia on Thursday.

The development was first reported by InvestorDaily.

The startup, which will sell 20 per cent of its enlarged share capital, will allocate its IPO proceeds to acquire a company with a similar business model. Cashlez said it will purchase more than 51 per cent of the startup.

“The firm that we’d like to acquire has a similar business to us, but it has a more specific line of work, such as creating a non-cash toll road transaction platform, a parking app, and a vending machine,” Cashlez CEO Teddy Setiawan Tee said.

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

Setiawan said the company targets to reach profitability two years after listing its shares on the acceleration board of the Indonesia Stock Exchange (IDX).

IDX’s acceleration board aims to cater to SMEs that are not yet qualified to list on the bourse’s main or development boards. The new board, which launched in July last year, does not require the startup to have net tangible assets.

Setiawan said the firm chose the IPO route to implement good corporate governance practices and also to avail tax incentives.

The firm is now seeking the approval of the country’s Financial Services Authority (OJK).

Cashlez, founded in 2015, claims to have handled transactions worth 3.8 trillion rupiah by the end of 2019. It targets to reach 10 trillion rupiah in transactions this year.

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

“One of our investees, Cashlez, is planning to IPO on the Jakarta Stock Exchange this coming March. Working towards a smooth listing and profitable exit for investors,” Mandiri Capital president director Eddi Danusaputro said in a LinkedIn post.

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

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. 
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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.