M Cash Integrasi (MCI), a digital kiosk firm backed by Kresna Graha Investama is looking to raise up to INR 250 billion (about US$18.7 million) through a year-end IPO.
The public offering will see MCI issue new shares equivalent to 20 percent of the company’s enlarged capital. Based on the share sale, industry watchers noted that the valuation of the company could potentially reach US$93.5 million.
“We are one year ahead of what we told investors on unlocking values through IPO,” said Suryandi Jahja, the managing director of Kresna, adding that since revealing its plans to go public, many foreign and local investors have expressed interest in becoming anchor investors.
However, “we want to make sure that the anchors will be good names, so we will be very, very selective,” Jahja said.
Kresna Securities will be appointed as the underwriter for the October offering.
Last month, Kresna Graha Investama through its investment unit Kresna Usaha Kreative (KUK), had bought a 17.6 percent stake in MCI. At the time, the company said that the purchase was expected to pave the way for Kresna to be “Indonesia’s digital distribution champion”.
Commenting on the deal, Jahja had said, “MCI business model suits Kresna’s vision – to be the leader that accelerates the transformation of Indonesian society into a digital lifestyle, by utilizing disruptive global technology excellence.”
MCI is the first revolutionary digital kiosk in Indonesia and it can generate any physical cards, including mobile SIM and e-money, with automatic registration. The startup also provides additional services such as phone credit top-up, routine bill payment, mall directory, flash sales points, e-commerce transactions, and other digital products.
The digital startup has a proven track record in this business, and is looking to grow even further with the support of Kresna’s digital ecosystem, targeting to launch 1000 outlets in 2017, and double that number in 2018.
“We are aiming to grow our revenue exponentially in years ahead, from INR 490 billion in 2016 (about US$ 36 million, unaudited),” said Martin Suharlie, the CEO of MCI.
According to a report by Wellesley, the market for kiosks is a fast-growing segment that is expected to touch US$ 9 million in 2017 and US$17.2 billion by the end of the decade. MCI and Kresna believe that Indonesia will follow the trend as well, and MCI will become the leader in this digital lifestyle transformation.
Proceeds from the IPO will be used for business expansion and working capital requirements.
By Vivian Foo, VCNewsNetwork