Toku’s Journey to an IPO: Innovating Customer Experience Platforms
Introduction to Toku’s Unique Offering
On December 10, 2024, Singapore’s technology startup Toku took a significant step forward by filing a preliminary prospectus for its listing on the Catalist board of the Singapore Exchange (SGX). Founded in 2017 as Hybrid Networks, the company quickly evolved and rebranded in 2019 to Toku. It focuses on enhancing customer experience through cutting-edge technology, enabling businesses to interact with their customers across various channels such as voice, chat, and email.
Harnessing Artificial Intelligence for Enhanced Customer Engagement
A key differentiator for Toku is its innovative use of artificial intelligence (AI). The company specializes in AI for voice, capable of transcribing, summarizing, and analyzing conversations for sentiment. This technology not only streamlines communication but also provides invaluable insights that can transform customer engagement strategies. As organizations worldwide contend with increasingly complex customer interactions, Toku’s solutions are positioned to meet growing market demands.
Market Positioning: Competing with Local and Global Giants
In its preliminary offer document, Toku articulates a unique market position, asserting its enterprise platform is tailored for complex and fragmented markets. Unlike larger competitors that offer generic solutions adapted from Western markets, Toku identifies itself as a local innovator capable of catering to nuances often overlooked by global players and regional companies lacking comprehensive capabilities.
A Portfolio of Diverse Customers
Toku’s services now span 32 countries across the Asia-Pacific, the Middle East, and Latin America. Its diverse clientele includes major players in various sectors, such as an online food and grocery delivery platform in Asia, along with enterprises in telecommunications, logistics, and public services. This diversified customer base not only reflects the adaptability of Toku’s solutions but also its potential for continued growth.
Revenue Streams and Financial Position
The company generates revenue not just from subscription and licensing of its software, but also from the usage of its services, professional projects, maintenance and support services, and hardware sales. Despite impressive revenue growth—reporting US$31.8 million in 2024, a 47.4% increase from US$21.6 million in 2022—Toku has faced challenges, experiencing widening losses that rose to US$5.3 million in 2024.
Roadmap for Growth: Funding and Future Prospects
The upcoming IPO serves multiple strategic purposes for Toku. By elevating its corporate profile regionally and beyond, the company aims to align with high standards of corporate governance and transparency. Proceeds from the IPO will be allocated towards research and development, talent acquisition, and expansion of Toku’s customer experience platform, which are essential for fueling its global ambitions.
Beyond enhancing its offerings, the funds will also serve as a cash reserve to fortify Toku’s financial position. This strategy involves potential partnerships and acquisitions, alongside addressing outstanding loans, ensuring a robust financial footing for future endeavors.
Recent Financial Results and Market Perspective
Toku’s latest financial results reflect a mixture of growth and ongoing challenges. In the first half of 2025, it posted revenue of US$16.6 million, an increase of 4.7% from the same period in 2024. However, lower revenues from professional services and maintenance tasks have somewhat offset this growth. Importantly, streamlining costs in sales and marketing, along with reductions in research and development costs, have led to a narrowing of losses during this period.
Toku anticipates favorable market conditions in the coming year, buoyed by a substantial order book totaling US$23.4 million. The company believes that as enterprises grapple with intricate customer engagement, the demand for their comprehensive and adaptable platform will only continue to grow.
Navigating the Competitive Landscape
As an AI-driven enterprise, Toku recognizes the importance of investing in technology to remain competitive. The company remains aware of the evolving legal and regulatory landscape surrounding AI, ensuring that it navigates these challenges while progressing toward its objectives.
Late in 2024, Toku successfully raised US$5 million in a Series A extension funding round, mainly led by Betatron Venture, and further fortified its leadership with the establishment of an advisory board, chaired by former politician and business leader Lim Hwee Hua. This strategic enhancement of its governance is a clear indication of Toku’s commitment to refining its operational approach.
Partnerships and Support for the Listing
PrimePartners Corporate Finance is at the helm as the issue manager, sponsor, underwriter, and co-placement agent for Toku’s upcoming listing, alongside CGS International Securities Singapore. This robust team plays a crucial role in ensuring a successful market entry, bolstering investor confidence in Toku’s promising journey ahead.
In summary, Toku’s determination to innovate and excel in customer experience technology positions it as a notable player in the tech landscape. With a clear focus on growth and strategic investment, the future looks bright as it steps onto the public stage.
