Hard reality cuts into luxurious Reebonz

Good Morning Dear Reader,   Timing is everything, as the phrase goes.   Just ask Singapore's Reebonz, a company that sells luxury goods online and has had a rollercoaster ride since its foundation in 2009.   The firm combined an original idea with the backing of storied investors—including Intel Capital and blue-chip VC firm GGC—and the leadership of a highly-respected serial entrepreneur. But it learnt that you can't cheat time.   Reebonz (pronounced 'ribbons') was in a hurry to go public. It began discussing an IPO in 2014, but struggled to get into shape for public life. When it did finally list in December 2018, eyebrows were raised. It took the unorthodox route of merging with a SPAC, a phenomenon that's gaining popularity in 2020.   Listing on the Nasdaq, it joined an exclusive club of public Southeast Asian tech companies that includes Sea Ltd and Razer. But Reebonz's haste would come back to haunt it.   Despite a valuation of US$250 million and nearly six million members, its stint as a public business lasted just 17 months as continued losses failed to impress retail investors. Reebonz was suspended from Nasdaq in April 2020, by which time its share price had crashed to US$0.33. It was above US$14 in January 2019 following the merger.   As one investor said, "If the timing were right, Reebonz's IPO could've had a much better outcome."   But what now?   Delisting is a hammer blow that few recover from. Take Malaysian payment firm MOL, for example. It was sold to Razer in a US$60 million fire sale in April 2018, two years after it was delisted from the Nasdaq. A sad outcome for a business that went public at a valuation of over US$900 million in 2014.   In today's story, Kay looks at whether Reebonz, the early trailblazer, can avoid MOL's fate and finally build a company benefitting of the idea it birthed over a decade ago. There's plenty to chew over for the startups of today who may be considering a SPAC listing option: https://the-ken.com/sea/story/hard-reality-cuts-into-luxurious-reebonz/ (10-minute read)   Best, Jon jon@the-ken.com   PS: We're looking for a full-time tech/business reporter to join The Ken Southeast Asia's team. You can find the full details here. What you just read is the personalised daily introduction to The Ken's story. Written by a different person each day. Often insightful, sometimes witty, and very rarely boring. Someone sent this to you? Sign up for free. Don't like these? You can unsubscribe. Want to manage your emails? Click here.