AirAsia’s Teleport plans to raise $50m in strategic funding

Malaysian budget airline AirAsia’s logistics arm Teleport plans to raise at least $50 million in a so-called “strategic fundraising round” this year to accelerate its growth.

“We are profitable so we are looking for a significant round to accelerate our growth. We target upwards of $50 million,” Teleport CEO Pete Chareonwongsak told DealStreetAsia.

“Given the overwhelming interest in our business, we are raising one round this year with a limited pool of investors,” he said.

Teleport is building a logistics infrastructure that enables consumers and businesses to trade seamlessly and with speed and visibility. Its services include air cargo, door-to-door service, social commerce merchant. 

During the quarter ended March 31, 2020, Teleport recorded a 49 per cent increase in revenue to 150.4 million ringgit as it completed its cargo consolidation across the group’s Southeast Asian airline operating companies. EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at 63.18 million ringgit. 

Teleport’s plan to raise financing comes as airlines globally, including AirAsia, are all but grounded by the COVID-19 outbreak and are raising capital to stay afloat.