PreIPO INTELLI™ Weekly Insights | Series 52
PreIPO INTELLI™ Weekly Insights | Series 52
Friday, October 6th 2023 | Volume 1 Series 52 | Metropolis Secures $1.7B, Three Private Companies Gearing To Go Public, and More Funding Updates.
Hello there! As we bid farewell to another workweek, we're excited to bring you the freshest news and updates in the INTELLI™ Newsletter. AI-Powered Parking Platform Metropolis has secured a whopping $1.7 billion in funding to acquire SP Plus, promising innovative changes in parking services. We're also keeping an eye on the upcoming IPOs of WeBuy Global, Healthy Green Group, and CardieX. We'll also provide you with updates on additional funding in the startup world.
AI-Powered Parking Platform Metropolis Secures $1.7 Billion to Acquire SP Plus
Metropolis, the AI-powered parking platform, has announced a funding round of $1.7 billion to facilitate its acquisition of SP Plus, a leading provider of parking facility management services. The financing includes a combination of equity and debt, co-led by Eldridge Capital and 3L Capital, with participation from several prominent firms such as BDT & MSD Partners’ affiliated credit funds, Vista Credit Partners, Temasek, Slow Ventures, and Assembly Ventures.
As part of this funding, Metropolis will secure $650 million in loans and $1.05 billion in Series C preferred stock financing. The company plans to acquire SP Plus for approximately $1.5 billion while maintaining a substantial balance on its balance sheet. This latest round follows Metropolis' previous fundraising efforts, which totaled $226 million.
Metropolis, founded by serial entrepreneur Alex Israel in 2017, offers a unique solution for existing parking structures, employing a computer vision system that allows customers to enter and exit without using traditional payment methods. Users simply provide their name, license plate, phone number, and payment details through a mobile app. The system tracks vehicles and automatically charges owners, sending a receipt via email upon exit.
By acquiring SP Plus, a publicly traded company with an extensive parking footprint in the U.S. and Canada, Metropolis aims to further enhance its vertical integration. SP Plus currently manages over two million parking spaces and operates in 3,300 parking facility locations, along with handling parking and shuttle bus services at 160 airports.
This acquisition strengthens Metropolis' position in the parking industry, complementing its existing operations, which included around 600 parking facilities as of June 2022. Following its acquisition of Premier Parking in the previous year, Metropolis now boasts a presence in more than 360 cities, serving millions of customers and processing over $4 billion in payments annually.
With its robust computer vision platform, Metropolis seeks to expand beyond parking facilities into various other physical world transactions, from vehicle charging stations and drive-thrus to car washes and retail stores. The platform's capabilities also extend to informing staffing, pricing, and maintenance decisions at parking facilities and collaborating with local businesses for in-app promotions.
The acquisition, priced at $54 per share in cash, will make SP Plus a private entity under Metropolis' ownership and represents a 52% premium over SP Plus' closing stock price on October 4. The deal is set to close in 2024, subject to customary closing conditions, regulatory approvals, and SP Plus' stockholder consent. The fate of SP Plus' approximately 20,000 employees following the transaction remains uncertain.
Next Companies Going Public
WeBuy Global Ltd. is set to go public in October in the NASDAQ under the ticker symbol WBUY. This technology company, registered in the Cayman Islands with its headquarters in Singapore, has developed an innovative online platform. This platform facilitates collaborative shopping experiences within messenger communities, allowing members to engage in joint or shared purchases.
WeBuy Global operates in the Southeast Asian social e-commerce market, which was valued at $20 billion in 2022 and is expected to grow at a compound annual rate of 20% from 2023 to 2026.
In 2022, WeBuy Global reported substantial revenue growth, reaching $44.56 million, marking a remarkable 99.9% increase. However, there was a net loss of $6.7 million, and the net cash flow as of 31.03.2023 stood at -$4.1 million. The company reported cash and cash equivalents of $1.6 million as of 31.12.2022, with liabilities totaling $10.8 million.
EF Hutton, a division of Benchmark Investments, LLC, will underwrite the IPO. The offering consists of 3.5 million ordinary shares at an average price of $4.25 per share, resulting in gross proceeds of $14.87 million. The anticipated market capitalization at the time of the IPO is approximately $218.92 million, with a potential price-to-sales ratio (P/S) of 4.91 (industry average: 1.63).
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Healthy Green Group Holding is preparing for an IPO scheduled for 10/19 on the NYSE, with the ticker symbol GDD. This company, registered in the Cayman Islands and headquartered in Hong Kong, operates in the consumer protection sector. It specializes in the sale of natural food products through its retail chain in residential areas in Hong Kong, also accepting online orders.
Healthy Green Group operates in the Hong Kong food products market, which was valued at $18.3 billion in 2020, with a compound annual growth rate of 1.1% from 2016 to 2020.
EF Hutton, a division of Benchmark Investments, LLC, will also underwrite the Healthy Green Group IPO. The offering comprises 2.0 million ordinary shares at an average price of $6.5 per share, generating gross proceeds of $13 million. The expected market capitalization at the time of the IPO is approximately $73.9 million, with a potential price-to-sales ratio (P/S) of 3.56 (industry average: 0.40).
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CardieX Ltd is gearing up for an IPO in the NASDAQ, trading under the ticker symbol CDEX. This healthcare company, registered in Australia with its headquarters in Sydney, specializes in developing medical devices for monitoring and treating various diseases, including hypertension and cardiovascular diseases. Their product line encompasses devices for monitoring all fundamental human health parameters.
CardieX operates in the global market of digital medical devices, which was valued at $107.86 billion in 2022 and is predicted to reach $667.8 billion by 2030. The compound annual growth rate from 2023 to 2030 is estimated at 25.6%.
Roth Capital Partners, LLC, will underwrite the CardieX IPO, which consists of 1.33 million ADS at an average price of $7.4 per ADS. This offering is expected to generate gross proceeds of $9.84 million, with an anticipated market capitalization of approximately $73.9 million. The potential price-to-sales ratio (P/S) is projected at 6.8 (industry average: 3.7).
Recent Funding Recap 🤝
Stoke Space - $100 Million Series B
Stoke Space, a startup specializing in reusable rocket technology, has secured $100 million in new funding led by Industrious Ventures. This funding round included participation from various investors, bringing Stoke's total raised capital to $175 million. The company plans to use this funding to develop its first rocket named "Nova" and expand launch infrastructure in Florida. Stoke recently achieved a significant milestone with a successful "hop" test of its reusable upper stage. The test confirmed the viability of its unique oxygen-hydrogen rocket engine design. Steve Angel, former CEO of Linde plc, will join Stoke's board of directors. The company aims to conduct its first orbital flight test by 2025. Stoke's CEO, Andy Lapsa, expressed confidence in their plans and milestones ahead.
SuperOrdinary - $58 Million Series B
SuperOrdinary, a Los Angeles-based startup, has raised $58 million in Series B funding at an $800 million valuation. The company assists American and European consumer brands in scaling on platforms like Amazon, social commerce, and entering the Chinese market. SuperOrdinary offers services such as Amazon account management, brand protection, and social commerce creator monetization. It is poised to achieve profitability in the next year, targeting over 50% growth and $350 million in revenue. SuperOrdinary's expertise lies in localizing marketing and navigating diverse channels, collaborating with influencers, and livestreaming. The funding will be used to expand its capabilities, including livestreaming and creator-led e-commerce in the U.S.
Habyt - $42 Million Series C
Berlin-based startup Habyt has secured €40 million (approximately $42 million) in Series C funding to expand its platform for people seeking longer-term accommodation, typically lasting between six and nine months. Habyt provides tech-driven housing solutions, listing accommodations online, conducting virtual viewings, and handling transactions online, including contracts and identity verification. The company manages everything end-to-end via its tech platform. The latest funding will be used to enhance its tech platform further and expand its business across Europe, Asia, and North America. Habyt currently operates in 50 cities with 30,000 units and aims to achieve full profitability by 2024.
As always, stay tuned for more updates and insights from the team at INTELLI™.