TBO Tek, a global B2B travel platform, is set to launch its IPO with hopes of raising $180 million. The IPO includes fresh offerings as well as shares from its promoters and investors. TBO Tek was established in 2006 with the goal of simplifying airline ticket bookings for travel agents. It now offers a wide range of travel services, including flights, hotels, car rentals, and more. The platform has served over 159,000 buyers across 100 countries and supports payments in over 55 currencies.
TBO Tek generates revenue through negotiated special rates with suppliers, adding markups and earning commissions on bookings. The company’s main revenue sources are B2B rates and commissions, with higher commissions earned from hotels and ancillary services compared to air tickets. For the first three quarters of fiscal 2024, TBO reported revenue of $122 million, EBITDA of $22 million, and net income of $19.2 million. The company also has a cash position of $48 million.
The co-founders and joint managing directors of TBO Tek are Gaurav Bhatnagar and Ankush Nijhawan. Affirma Capital and General Atlantic are strategic investors in the company. The current IPO price band has been set at $10.50 – $11, with market observers reporting trading at a premium in the grey market. TBO Tek operates various business verticals, including TBO Academy, TBO+, ZamZam, Kizan, Paxes, Travel Partner Solution, and Roamer Application.
TBO Tek has expanded its operations internationally, including in the Middle East and Europe. In the Middle East, the company focuses on key countries such as the UAE, Saudi Arabia, Kuwait, and Qatar. TBO also works with the Saudi Tourism Authority and has brands catering to religious and leisure travel in the region. In Europe, the company has seen growth following acquisitions of accommodation wholesalers and distribution platforms. TBO Tek had 2,000 employees globally as of December 31, 2023, with offices in multiple countries.
TBO Tek plans to allocate a portion of its net proceeds from the IPO towards strategic acquisitions and investments. The company aims to prioritize acquisitions in the travel domain that complement its existing business and offer geographical expansion opportunities. TBO intends to invest in its material subsidiary to support overseas business growth and strengthen its platform. The company’s proactive approach to the IPO amidst uncertain industry landscapes sets it apart from other travel companies.
