The regional logistics firm is on track to generate RM1 billion (US$225 million) in annual revenue for the first time this year and is likely to demonstrate similar growth next year, CEO Pete Chareonwongsak said at a briefing in Kuala Lumpur today.
“After that we can decide if we are ready,” he said.
Teleport has reported revenue growth of at least 50% every year since 2022 and is set to become one of Capital A’s main revenue generators after the AirAsia operator disposes its aviation business to its sister company AirAsia X Bhd before the end of the year.
“I think the pressure next year will be on us and ADE to demonstrate our earnings,” he said, referring to Capital A’s aircraft maintenance arm Asia Digital Engineering.
Teleport contributed 35% of Capital A’s non-aviation revenue, according to the parent company’s third-quarter results last week.
“Everyone internally believes we are a billion-dollar business, and we need to have the earnings to justify a billion dollar business,” Chareonwongsak said.
“is also expecting to do another round of equity fundraising next year,” he added.
Before that, it will look to restructure US$35 million of debt it raised in 2023 in order to support an initial public offering.
The company saw third-quarter revenue of 287 million ringgit, a gain of 51% compared to the same period last year, according to Capital A’s third-quarter results last week.
Its earnings before interest, taxes, depreciation and amortisation surged around 1,700% from a year ago to 21.9 million ringgit for the quarter.
Teleport operates an asset-light model by utilising the belly space of AirAsia’s 200-plus planes and its 40 partner airlines, as well as three of its own freighters.
It expects to add another 10 partners in the pipeline, and sees growth at scale appearing via its partnership with other airlines.
Currently, Teleport delivers 207,000 parcels a day, and expects to reach 350,000 parcels a day by the end of the year.
It aims to grow to 2 million parcels a day by the end of 2025 using its third-party partner networks.
Much of Teleport’s growth trajectory is aimed at tapping into the growing e-commerce export market out of China.
Chareonwongsak believes his company can sustain its momentum even if incoming US President Donald Trump imposes tariffs on imports from China.
“I think no matter what happens, e-commerce is pretty robust,” he said, pointing out that Teleport does not serve the US, Europe and Australian markets, which would likely be most impacted by any tariffs.
“If you are diversified across 40 airlines, you’ve got multiple ways to deliver the capacity you need.” he added.