Teleport has signed a subscription agreement with funds managed by HPS Investment Partners to raise new pre‑IPO growth capital, which the company says will support its push to expand its cross‑border e‑commerce model into more international markets.

The investment totals US$50 million and values Teleport, the logistics arm of Capital A (formerly AirAsia Group Berhad), at US$500 million pre-money, and will help accelerate the rollout of its network and services globally.

In a statement, Teleport noted that this capital raise will allow it to strengthen its balance sheet and fund network growth with its key partner airlines, ahead of a future public listing.

Altogether, the company has raised approximately US$109 million since inception in 2018.

"Teleport's updated valuation from a leading global institutional investor is a strong validation for Capital A and the various AirAsia airlines, who have supported the build of Teleport since its inception eight years ago," the announcement said, adding that this increased institutional confidence in Teleport's model demonstrates the commercial viability and sustainability of its unique model, as Southeast Asia's integrated eCommerce logistics specialist.

Unique asset-light air network

Teleport says it has expanded its infrastructure and asset‑light network to become one of the largest cargo operators in Southeast Asia and a notable player in the wider Asian and global markets by volume.

It noted that its unique model, anchored on an asset-light air network infrastructure, allows it to deliver cross-border eCommerce at marginal cost.

The Teleport Network has the most direct point-to-point connections – reaching over 290 capital and smaller cities across 80 countries in Asia Pacific; connecting over 50 partner airlines. It is further enabled by technology, from first to last mile, built to continuously move eCommerce faster, cheaper, better.

"We are happy to welcome HPS in our next stage of growth to scale our unique 'asset-light' model for cross border eCommerce to reach further into key global markets, specifically targeting high-growth eCommerce corridors between China, the rest of Asia, Middle East and beyond," said Pete Chareonwongsak, chief executive officer of Teleport.

"We appreciate the trust and confidence that HPS has placed in Teleport by investing in our journey towards an IPO."

Chareonwongsak noted that the Teleport model has "proven itself in more ways than one and we are still ahead of the curve."

"Today, we have only captured 1% of a US$28 billion Total Addressable Market for China and Southeast Asia air cargo and cross-border eCommerce. We will continue with that same perseverance with the continued trust and support of Capital A, AirAsia, our shareholders, investors and partner airlines who share the same belief of being better together in order to serve our customers faster, cheaper and better," he added.

Tony Fernandes, chief executive officer of Capital A Berhad said, "This investment is a clear vindication of our strategy and innovative approach. I am thrilled that Teleport has evolved into a leading cargo and logistics provider globally, ranked among the top players in Asia. Our unwavering support for Teleport and belief in its potential have directly resulted in this significant capital raising."

"This partnership is immensely beneficial to the AirAsia airlines, to work with a dedicated partner to maximise our belly space and network utilisation."

Fernandes said this updated valuation represents an unrealised return of over 100-fold for Capital A, and positions Teleport well for a future IPO. "This is a clear win for our shareholders, delivering significant returns, and this strategy will continue as we actively look for growth capital for other Capital A companies."

The completion of the issuance of RCPS by Teleport is subject to the satisfaction or waiver of the conditions precedent as set out in the Subscription Agreement.

It said that BNP Paribas and Milbank acted as financial advisor and legal counsel respectively to Teleport, while Latham & Watkins acted as legal counsel to HPS Investment Partners.