Source: Beast Finance Author: Beast Finance
Beast Finance has learned that Singapore’s ride-hailing software platform Ryde Group has recently submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) and applied for an IPO listing on Nasdaq. The stock code is (RYDE). Ryde Group plans to pass the Nasdaq IPO. The IPO raised US$17 million.
Company Profile
Singapore-based Ryde Group is a company that provides a variety of ride-sharing and ride-hailing services to users who want to make money or obtain low-cost on-demand transportation services in Singapore.
Ryde Group management is led by Founder, Chairman and Chief Executive Officer Mr. Terence Zou, who has been with the company since its inception in 2014 and previously served as Investment Director at Newfields Capital and Vice President at 3V SourceOne Capital.
As of December 31, 2022, Ryde Group has received US$4 million in equity investment and US$3.8 million in convertible debt investment from investors including DLG Ventures Pte. Ltd. and Tan Choon Ming.
Industry Overview
According to a 2021 market research report by McKinsey, Asia's mobile services market is expected to generate a multi-trillion dollar opportunity within a decade by 2031.
As shown in the chart below, the use of shared mobility solutions is likely to see significant and sustained growth over the coming period, while the use of individual private vehicles is likely to decline:
The main drivers of this expected growth are new consumer behaviors that are changing consumption patterns and new forms of car ownership.
In addition, major automakers such as Toyota and Hyundai are also launching subscription-based car services.
A consumer survey showed that 55% of consumers expressed their willingness to rent a car instead of buying a car. '
Ryde Group's main competitors in this industry include:
(1) GojekGOJEK
(2) Grab (GRAB)
（3）THEN
（4）ComfortDelGro Taxi
Financial Situation
According to the IPO prospectus, Beast Finance summarizes the financial performance of Ryde Group as follows:
(1) Total revenue: Ryde Group’s total revenue in 2021 and 2022 is: US$4,584,300 and US$6,577,000 respectively.
(2) Gross profit (loss): Ryde Group’s gross profits in 2021 and 2022 are: US$1,461,500 and US$962,000 respectively.
(3) Gross profit margin: Ryde Group’s gross profit margin in 2021 and 2022 are: 31.88% and 14.63% respectively.
(4) Operating profit (loss): Ryde Group’s operating profits in 2021 and 2022 are: US$495,060 and US$572,000 respectively.
(5) Net income (loss): Ryde Group’s net income in 2021 and 2022 will be: US$917,600 and US$3,696,000 respectively.
(6) Operating cash flow: Ryde Group’s operating cash flow in 2021 and 2022 are: US$82,880 and US$2,862,000 respectively.
As of December 31, 2022, Ryde Group had $2.2 million in cash and $9.0 million in total liabilities.
Ryde Group had negative free cash flow ($2.9m) in the twelve months to December 31, 2022.
IPO details
According to the IPO prospectus, Beast Finance compiled the IPO situation of Ryde Group as follows:
Ryde Group plans to raise US$17 million through this Nasdaq IPO listing.
No existing shareholders have expressed interest in buying Ryde Group shares at the IPO price.
The company's current equity compensation incentive plan provides for employees and other key personnel to receive up to 10% of company stock when they meet performance and tenure milestones.
Regarding pending legal proceedings, management states that none of the legal proceedings would have a material adverse effect on the Company's financial condition or results of operations.
Ryde Group currently plans to pay no dividends and retain future earnings, if any, primarily to reinvest in the company's growth plans and working capital needs.
The intermediary agency
Mengshou Finance learned from Ryde Group’s IPO prospectus that Maxim Group was the lead underwriter of Ryde Group’s Nasdaq IPO listing. The company has led six IPOs in the past 12 months since its IPO. The average return was negative (38.9%). This was the lowest performance of any major underwriter during the period.
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