Ryde aims to gain 30% of the ride-hailing market in Singapore by 2023, competing directly with Grab and Go-jek.
Singaporean mobility startup Ryde is targeting a 2022 IPO at a valuation of S$200 million (almost US$151 million), the startup announced in a press release today. It has appointed SAC Capital as its financial advisor, the statement said.
Ryde plans to list on Catalist, the Singapore stock exchange’s sponsor-supervised listing platform for fast-growing local companies, the statement noted. It added that the IPO could include plans for the startup’s top drivers to receive bonuses and shares upon completion of the IPO.
Ryde Founder and CEO Terence Zou said, “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,” he added.
Founded in 2014, Ryde is a carpooling app that allows users to book shared rides through its app. It later ventured into private-hire and taxi services. The startup earns a commission of 10% for each ride. In 2018, the startup entered the delivery vertical with RydeSEND – an on-demand delivery service that delivers small packages like food, clothing, and documents within 50 minutes.
There is also RydePET, a pet-friendly option for people travelling with pets. Customers can also hire a driver for a few hours with RydeHIRE. Last year, the startup started accepting Bitcoin as payment for its rides.
The startup is planning to launch Ryde for Business shortly to allow businesses and individuals to manage their travel expenses, the statement noted. It added that Ryde is also planning to launch ‘same-day’ delivery to expand its delivery vertical.
Ryde currently has over 10,000 monthly active drivers in its network. The startup has facilitated over 16 million ride bookings to date, the statement noted.
According to the press release, Ryde achieved profitability in Q4 2020 as its Gross Transaction Value (GTV) increased 4X during the pandemic. Further, the startup also saw a 30% year-on-year growth of users on its platform during the same time.
Zou said, “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.”
He added, “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.”
The startup is targeting GTV of S$120 million from both ride-hailing and delivery verticals in 2021, the statement said. Ryde also aims to capture 30% of the ride hailing market in Singapore by 2023. The aim is especially ambitious considering that Grab and Go-jek control the majority market share in the region.
Header image by Ono Kosuki from Pexels