MyRepublic seals USD51.7m cash injection from Makara Capital; plans MVNO launch in 1Q18

22 Nov 2017

Singapore-based broadband access provider MyRepublic has secured a SGD70 million (USD51.7 million) investment from Makara Innovation Fund (MIF), a private equity fund focused on internationalisation of businesses with strong intellectual property credentials. Commenting on the move, Kelvin Tan, Director of Investments at Makara Capital, said: ‘MyRepublic’s unique lean operating model positions it at the vanguard of the telecommunications sector’s digital transformation in one of the most exciting growth regions of the world. The fund’s investment capital aims to enable the company’s growth ambitions, with a focus on IP management and monetization, scaling and expansion.’ The investment will allow MyRepublic to expand its enterprise development capabilities and accelerate its expansion across Southeast Asia’s growth markets, as well as build on its existing core markets of Singapore, Indonesia, Australia and New Zealand.

As part of this expansion plan, MyRepublic CEO Malcolm Rodrigues says his company will look to use the cash injection to ‘accelerate’ plans to launch mobile services, including in Singapore, ’next year’. In a press conference, Rodrigues confirmed that MyRepublic was initially looking to launch mobile services in Singapore via an MVNO model, in partnership with a local telco. But he says that the company’s thinking has ‘shifted’, and it now plans to launch mobile services in all four markets in which its broadband services are currently available – Singapore, Australia, Indonesia and New Zealand – instead of a single market. MyRepublic had suggested a Q4 2017 mobile launch in the city-state but has now postponed that until early in 2018. Australia and Indonesia will also have access to these services by the middle of next year, he said.

TeleGeography notes that MyRepublic plans to launch an initial public offering (IPO) by the end of 2018 or early 2019 and is in the process of raising a SGD100 million pre-IPO round. Whilst it has not disclosed how much it plans to raise through the planned IPO, it is targeting a valuation of SGD650 million after its Series C funding. It is considering a listing on bourses in Hong Kong, Singapore and Australia. No institutional investor has been identified to lead the round, according to MyRepublic CEO Malcolm Rodrigues. The firm is targeting an IPO in either Hong Kong, Singapore or Australia. It plans to use the IPO proceeds to finance its entry into new markets such as Malaysia, the Philippines, Sri Lanka, Myanmar, Cambodia and Vietnam.