TBO Tek DRHP Analysis - A Leading Global Travel Distribution Platform: Anand Rathi

Anand Rathi Report

An aggregator, Travel Boutique Online (TBO Tek) helps travel distribution between suppliers (e.g. more than 750 airlines, ~1 million hotels globally) and buyers (travel agencies, independent travel advisors, etc.).

Travel suppliers need a way to market their inventory efficiently to buyers, who in turn need access to these to meet their customers’ travel requirements.

Being modular (offering need-specific modules) and asset-light, this platform is scalable with the potential to launch new solutions, thereby creating a network effect. Over FY19-23, revenue/Ebitda clocked 24.7%/43.7% compound annual growth rates.

Key risks:

The top-five suppliers contributed ~60.5% of gross transaction in Q1 FY24; high concentration risks in the hotels segment (a single customer accounts for ~36% segment revenue, etc.)

Issue details

The maiden public issue comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an offer-for-sale of up to ~15.64 million equity shares equity shares by promoters and investors.

Objects of the issue

Growing and strengthening the platform by adding buyers and suppliers

• Investment in technology and data solutions

• Investment in material subsidiary, Tek Travels DMCC, to onboard platform-users via marketing; hiring sales and contracting personnel to augment supplier and buyer bases outside India

• Investment in sales, marketing and infrastructure for growth plans in India.

Inorganic acquisitions

General corporate purposes

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