Singapore ride-hailing startup Ryde announced today (March 8) that it has appointed SAC Capital as its financial adviser to lead preparations ahead of a planned initial public offering (IPO) on the Singapore Exchange (SGX) next year.
According to the company, it is “targeting a S$200 million valuation” through a listing on Catalist, SGX’s sponsor-supervised listing platform for fast-growing local companies.
“A significant portion of the IPO proceeds will be invested in technology, product development and enhancing our operations,” said Terence Zou, founder and CEO of Ryde.
“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.”
Part of the IPO also includes plans for its top drivers to receive bonuses and shares upon completion of the IPO. It currently has over 10,000 monthly active drivers in its network.
Zou added that Ryde aims to be the “first profitable ride-hailing technology company in the SGX.”
Plans To Increase Market Share In S’pore By 2023
Ryde recently turned profitable in the fourth quarter of 2020 after it achieved record growth in revenues.
Its Gross Transaction Value (GTV) increased four times during the Covid-19 pandemic, and it also saw over 30 per cent year-on-year growth of users on its platform during this period.
This year, Ryde is targeting to hit S$120 million of GTV from both its ride-hailing and delivery verticals.
Additionally, it is looking to grow its quick commerce vertical RydeSEND following the increased demand for delivery post-pandemic.
Ryde was actually the first in Singapore to introduce this point-to-point parcel delivery service, where you can send a package to anyone in 50 minutes. This is the fastest service available in Singapore at the moment.
The service can be used by corporates, restaurants, home businesses, and individuals for on-demand delivery services. Ryde plans to expand this vertical to include same-day delivery for more competitive pricing.
Moving forward, Ryde also aims to capture 30 per cent of the ride-hailing market in Singapore by 2023.
Ryde delivers a comprehensive suite of mobility services. Riders can carpool and have access to both private-hire and taxi services, on top of pet-friendly ride options and a service to hire a driver for a couple of hours.
Ryde is also looking to launch a Ryde for Business feature soon, which allows businesses and individuals to manage their travel expenses easily.
To date, the company has facilitated over 16 million bookings, and its app has been downloaded close to 700,000 times.
Featured Image Credit: Ryde
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