The South Korean travel booking app Yanolja has announced that it expects to incur losses in 2022 due to increased expenses. The news came as the company unveiled its plans to go public through a merger with the special purpose acquisition company (SPAC) FTAC Athena Acquisition Corp. Yanolja is expected to secure $350 million in gross proceeds from the deal.
While the company has not provided specific figures on its projected losses, it cited the increased cost of marketing, research and development, and expanding overseas as factors that have put a strain on its finances.
Yanolja, which means “hey, let’s play” in Korean, offers a range of services including hotel and accommodation bookings, tour packages, and leisure activities. The app, which was founded in 2005, has become popular in South Korea and has recently expanded its services to other countries such as Japan, Taiwan, and the United Arab Emirates.
The company’s decision to go public is in line with its ambition to become the world’s top travel tech platform. Yanolja has stated that it plans to use the funds from the IPO to expand its services to new markets and enhance its technology offerings.
Yanolja has been expanding rapidly in recent years, with its revenue reaching $367 million in 2020, up from $134 million in 2018. The company has also acquired a number of other travel-related businesses, including a hotel management platform and an online travel agency.
However, the COVID-19 pandemic has had a significant impact on Yanolja’s earnings, with its revenue falling by around 40% in the first half of 2020. The company has since recovered, but it has not yet returned to pre-pandemic levels.
Despite the pandemic, Yanolja has remained optimistic about its future prospects. The company has continued to invest in new products and services, including a home sharing platform and a smart hotel solution that uses artificial intelligence to enhance the guest experience.
The merger with FTAC Athena Acquisition Corp. is expected to be completed in the second half of 2021, subject to regulatory approval. The deal is one of several SPAC mergers that have taken place in recent months, as more companies look to go public through this route.
Yanolja’s decision to go public through a SPAC merger has been welcomed by investors, with the company’s share price rising by 15.4% following the announcement.
The travel industry has been hit hard by the pandemic, but Yanolja’s decision to go public suggests that it believes the sector will recover over the coming years. The company’s ambition to become the world’s top travel tech platform is an indication of the growing importance of technology in the travel industry, as consumers increasingly seek out seamless and convenient experiences.