Exclusive: Kresna-backed M Cash Integrasi eyes year-end IPO

Photo: Bloomberg

M Cash Integrasi (MCI), a digital kiosk firm backed by Kresna Graha Investama, plans to raise up to Rp250 billion ($18.7 million) through a year-end IPO, a Kresna director told DEALSTREETASIA.

The public offering will see MCI releasing new shares equivalent to 20 per cent of its enlarged capital. Based on the share sale, the valuation of the company can be pegged at about $93.5 million.

Proceeds from the IPO will be used for business expansion and working capital requirements.

“We are one year ahead of what we told investors on unlocking values through IPO,” Suryandi Jahja, Kresna managing director, told this portal.

Kresna Securities has been appointed as an underwriter for the October offering. Jahja also claimed that many foreign and local investors have expressed an interest in becoming anchor investors.

“We want to make sure that the anchors will be good names, so we will be very, very selective,” he said, adding that MCI could be a “billion-dollar company” in a few years time.

Kresna Graha Investama, through its unit Kresna Usaha Kreative (KUK), bought a 17.6 per cent stake in MCI in April. The value of the deal was undisclosed. The company said that the purchase was expected to pave the way for it to be “Indonesia’s digital distribution champion”.

MCI can generate any physical cards, including mobile SIM and e-money, with automatic registration. It also provides other services such as phone credit top-up, routine bill payment, mall directory, advertisement (co-branding), voucher and promotions, flash sales points, e-commerce transactions and other digital products.

“MCI business model suits Kresna’s vision – to be the leader that accelerates the transformation of Indonesian society into a digital lifestyle, by utilising disruptive global technology excellence,” Jahja had then said.

Globally, the market for self-service technologies like the one MCI provides will touch $59.2 billion this year, according to a report by Massachusetts-based BCC research. By 2021, it is expected to reach $83.5 billion. The market for kiosks, the fastest-growing segment, is expected to touch $9 billion in 2017 and $17.2 billion by the end of the decade, the report said.

Kresna believes that, sooner or later, Indonesia will follow this trend.

By the end of this year, Kresna will help MCI launch 1,000 outlets, and double that number in 2018.

“We are aiming to grow our revenue exponentially in years ahead, from Rp490 billion in 2016 (unaudited),” said Martin Suharlie, CEO of MCI.

Kresna has been on an acquisition spree since last year when it bought satellite services DNK, ticket booking platform Padiciti, and on-demand business performance app Kpisoft, among others. It also teamed up with Bank Mandiri to launch Mandiri e-cash (including LINE Pay e-cash), and with China’s Wecash Group

It partnered Supra Boga Lestari to develop an online shopping platform, Kesupermarket.com. It also invested in DominoPOS, the developer and operator of Orbit and Gotomalls.com.

Kresna first set its eyes on digital expansion three years ago, when it bought a 5 per cent stake in global VC firm Vickers Capital Group. Vickers has invested in companies such as MatchMove, MDaq, Simo Holdings, and KPISoft. Vickers also invested in Samumed, a revolutionary life science company with its latest funding round valuing the company at $12 billion.

With its strong acquisitive streak, Kresna has established itself as the only financial-digital hybrid company listed on the Indonesian Stock Exchange (IDX). In the first quarter this year, Kresna booked Rp109.9 billion in revenue, double the number in the same period last year. Meanwhile, net profit reached Rp69.5 billion, almost triple from the same period a year ago.

Also Read:

Indonesia: Kresna acquires 17.6% stake in digital kiosk firm M Cash Integrasi

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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.

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.