TBO Tek Ltd IPO

Platform creating network effect with interlinked flywheels to enhance value proposition for partners.

Modular and scalable proprietary technology platform allowing addition of new lines of business, markets, and travel products

Ability to generate and leverage large data assets.

Data driven decision making across the enterprise.

Founders led company supported by experienced professional management team with deep travel and technology expertise.

Capital efficient business model with a combination of sustainable growth.

Its business depends on the companys relationships with a limited range of Suppliers, and any adverse changes in such relationships, or its inability to enter into new relationships, could adversely affect its business and results of operations.

The companys business is exposed to pricing pressure from its Suppliers who may withhold inventory or modify the terms of its arrangements, including for a reduction or elimination of commission, incentive or other compensation payable to it, which could adversely affect its business and results of operations.

The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialize, may adversely affect its financial condition.

The company depends on its proprietary technology for critical functions of the companys business. Failure to properly maintain or promptly upgrade its technology may result in disruptions to or lower quality of its services and the companys business, results of operations and financial condition may be adversely affected.

The Company and Joint Managing Directors, namely Ankush Nijhawan and Gaurav Bhatnagar, have received a show cause notice from the Enforcement Directorate and compounding applications are in the process of being filed with the Reserve Bank of India. Consequently, its may be subject to regulatory actions and penalties/compounding fees for such non-compliance which may adversely impact its business, financial condition and reputation.

The company operates in a highly competitive industry and its inability to compete effectively may adversely affect its business and results of operations.

The company does not have any exact comparable listed peers in India or abroad. Accordingly, valuation of the Company as compared with other listed Indian platforms operating in the travel industry, global companies operating in travel industry and other online platforms listed in India, may not be comparable and could be higher on account of certain aspects.

Failures of the third-party data center hosting facilities could impair the delivery of its services and solutions and adversely affect the companys business.

Its Offer price of Rs. [*] is at a premium of [*] times to the price at which our existing shareholders, namely Augusta TBO and TBO Korea, have sold Equity Shares to General Atlantic in October 2023 and February 2024.

Its revenue is substantially dependent on the hotels and ancillary bookings whose contribution has significantly increased from 35.69% of its revenue from operations for Fiscal 2021 to 67.83% for Fiscal 2023 and was 67.59% and 72.47%, respectively, for the nine months ended December 31, 2022 and December 31, 2023. In addition, all of its GTV is entirely dependent on its air and hotels and ancillary bookings in the last three Fiscals and in the nine months ended December 31, 2022 and December 31, 2023, respectively. Factors that may negatively impact its hotels and ancillary bookings could have an adverse effect on its business, prospects, results of operations and financial condition.