Daily BriefsTMT/Internet

TMT: Upstart Holdings Inc, TDCX and more

In today’s briefing:

  • Upstart Holdings – Up 1,252% from the IPO Price & A Key Comp for Kakao Pay
  • TDCX Inc. Pre-IPO Tearsheet

Upstart Holdings – Up 1,252% from the IPO Price & A Key Comp for Kakao Pay

By Douglas Kim

Upstart Holdings Inc (UPST US) has been one of the best performing SaaS stocks in the United States in the past year. Upstart Holdings completed its IPO in December 2020 at an IPO price of $20 per share. Since then, its share price has skyrocketed by 1,252% to reach $270.46 per share. Upstart’s market cap has also jumped to $21 billion. Upstart Holdings is also one of the comps to Kakao Pay that the bankers used to price the Kakao Pay IPO. 

All in all, Upstart Holdings has experienced extraordinary growth in sales and profits in the past couple of years, driven by its superior AI driven technologies in the personal and auto loans sector. Upstart Holdings is clearly one of the most important companies to pay attention in the global AI-driven lending industry. 

As Kakao Pay is trying to complete its IPO next month, it has chosen to include Upstart Holdings as one of the comps. However, we have concerns that investors are likely to put significant discount on the relative valuations of Kakao Pay as compared to Upstart due to the following factors such as increased regulatory scrutiny on the fintech services provided by Kakao Pay and higher marketing and operating costs that are likely to be required to change the way its current financial services are provided.

TDCX Inc. Pre-IPO Tearsheet

By Clarence Chu

TDCX (TDCX US) is looking to raise up to US$400m in its upcoming US IPO. The deal will be run by GS and CS.

TDCX Inc. is a Singapore-headquartered digital customer experience (CX) provider that primarily caters outsourcing services to clients in new economy sectors and traditional blue-chip firms undergoing digital transformation. As of Jun 21, they serve 43 global clients and are on 114 active campaigns. The firm has offices located in 10 geographies across Asia, Europe and Latin America, namely, Singapore, the Philippines, Malaysia, Thailand, China, Japan, Spain, India, Columbia and Romania.

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