S’pore proptech startup Ohmyhome lists on Nasdaq at US$88M valuation – income raises doubts

Singapore’s property tech startup Ohmyhome is the primary Singaporean firm to record within the US this yr, with a valuation of US$88 million.

It priced its preliminary public providing (IPO) at US$4 per share, elevating some US$11.2 million (S$15.05 million) from the difficulty of some 3.6 million peculiar shares.

Of those shares, 2.8 million are provided by Ohmyhome and 975,000 are provided by the promoting stockholder. The proptech firm stated it won’t obtain any proceeds from the sale of shares by the promoting stakeholder.

It expects the IPO to shut on or about Thursday, topic to the satisfaction of customary closing situations.

The corporate plans to make use of the proceeds for market growth in Southeast Asia, for analysis and improvement of its merchandise, to repay “sure interest-free loans” and for working capital and different basic company functions, stated Ohmyhome in its IPO submitting.

Its income have raised “substantial doubt”

Established in 2016 by sisters Race and Rhonda Wong as a one-stop property know-how platform.

The corporate provides property providers corresponding to search, self itemizing, agent service, mortgage, conveyancing, renovation and transferring providers. It additionally facilitates cross-border shopping for and promoting of properties throughout its three markets.

It raised US$5 million funding in a Sequence A spherical in 2021 at a valuation of S$60.8 million. For the primary half of 2022, it booked a complete income of S$3.4 million — that is up 45.8 per cent from S$2.3 million for a similar interval a yr earlier.

Nevertheless, its web loss for the primary half of 2022 widened to S$900,000 from S$500,000, which the corporate attributed to heavy funding in know-how.

Based on monetary statements reported by TechinAsia, its brokerage providers accounted for over 85 per cent of Ohmyhome’s whole income in three of the 4 intervals underneath assessment.

Nevertheless, in the latest interval, this determine decreased to 50 per cent, partially resulting from a related-party transaction. After eradicating this transaction, brokerage providers nonetheless accounted for 72 per cent of the latest interval’s income, much like earlier years.

Regardless of the potential impression of the related-party transaction, Ohmyhome’s income in 2021 elevated by 31 per cent from the earlier yr. This pattern continued within the first half of 2022, with a 46 per cent leap from the identical interval in 2021.

Nevertheless, US$0.8 million of the income within the first half of 2022 got here from the related-party transaction, which will not be sustainable past 2022. Excluding this transaction, income development for the primary half of 2022 was simply two per cent from the earlier yr.

Along with considerations about its income, Ohmyhome’s accountants have expressed “substantial doubt” about its capability to proceed as a going concern primarily based on its monetary statements as of December 2021. The corporate skilled detrimental cashflow from working actions of US$1.3 million, with simply US$0.9 million of money remaining on its steadiness sheet.

Ohmyhome hopes that by going public, it can assist the corporate safe funding and align its sources of funding with its bills and debt reimbursement obligations.

Featured Picture Credit score: Ohmyhome