TBO Tek Establishes a New Indonesian Subsidiary

Nitin Konde, Varun Bhardwaj

Dec 3, 2024 — 2 min read

TBO Tek Launches New Subsidiary in Indonesia

TBO Tek, a publicly traded B2B travel technology firm, has established a new wholly owned subsidiary in Indonesia as part of its strategy to increase its presence in the area and broaden its worldwide reach. TBO Tek in Indonesia will receive business support services from the subsidiary, including marketing and promotional operations, the company announced in an exchange filing. On November 28, TBO Tek Indonesia was established with 10,000 shares of authorised and issued capital, each worth INR 10 lakh. Nevertheless, the recently established organisation has not yet started conducting business.

TBO Tek is on Worldwide Expansion Spree

TBO Tek was established in 2006 and offers tour operators and travel brokers travelling solutions. Among other things, it provides dynamic packages, hotel and travel booking APIs, and white-label solutions. The business has been increasing its footprint in important foreign markets. To strengthen its position in the Australian tourism market, the company established a new subsidiary last month called TBO Tek Australia. To increase its presence in the area, TBO Tek first established a subsidiary on Canary Island in September.

Current Financial Details of TBO Tek

In the September quarter of the fiscal year 2024–25 (Q2 FY25), Travel Boutique Online (TBO Tek) announced a 7% increase in its consolidated net profit to INR 60.1 Cr, up from INR 56.1 Cr in the same quarter the previous year. During the reviewed quarter, the company's operating revenue increased by 28% to INR 450.7 Cr from INR 352.3 Cr during the same period last year.

Revenue from hotels and packages increased 36.2% year over year to INR 357.1 Cr, while revenue from the airline ticketing sector remained nearly unchanged at INR 83.9 Cr. It was announced last month that TBO Tek had prevailed in its six-year tax battle against the Service Tax Department of the federal government. The case centred on TBO Tek's methods for collecting service tax from its travel sub-agents between 2007 and 2013.

Indian Startups Taking on Global Market

In addition to the requirement to scale their operations, Indian startups are drawn to foreign expansion since it offers them the chance to improve brand awareness and pull in talent from around the world. Favourable government regulations, technological developments, easy access to finance, and a growing pool of skilled workers all contribute to this tendency.

Indian entrepreneurs are meeting the demands of global markets in addition to the problems faced by Indian consumers by utilising innovative technologies and disruptive business methods. About 570 businesses from India's enormous 60,000-strong ecosystem entered foreign markets in 2022, up significantly from the 300 that did so in 2018, according to Global Launch Base, an international consulting firm. Singapore, the US, the UK, Canada, and Australia are some of the most popular locations for Indian entrepreneurs looking to expand internationally.