T Map Mobility, known for its navigation app "T Map (TMAP)," is accelerating its restructuring by downsizing non-core businesses such as driver services and the Seoul airport limousine. The goal is to reorganize its business around the "data solution" sector, which has been identified as a growth engine, and to push for an initial public offering (IPO) within the year.
However, concerns are rising that the company may face delays in its listing schedule, as it has yet to escape the red, and a clear monetization model in the "mobility data" sector it has identified as a future revenue source is lacking.
According to industry reports on the 9th, T Map Mobility has entered into a business reorganization to transform into a data-driven corporation this year. This move is seen as part of the "rebalancing" strategy that SK Group has been aggressively pursuing since last year. T Map Mobility is a subsidiary of SK Square, an investment-focused affiliate of SK Group. It was established in December 2020 when SK Telecom's mobility division was partitioned.
SK Square intensified its rebalancing efforts last July when it replaced its chief executive officer (CEO) and sold its stake in KRAFTON for 266 billion won. Han Myung-jin, CEO of SK Square, noted during the regular shareholders' meeting in March that the company plans to secure between 2 trillion and 3 trillion won through the liquefaction of non-core assets and dividends by 2027.
Earlier this month, T Map Mobility decided to sell its entire stake in the corporate specialized driver service company "Good Service" for 14 billion won, and last month it signed a stock purchase agreement (SPA) to sell 100% of its subsidiary Seoul Airport Limousine to the private equity fund (PEF) operator STIC Investments. The sale amount is said to be about 60 billion won.
Previously, T Map Mobility ended its electric scooter business, which had been offered in partnership with the shared scooter brands TTINGTING and Gikooter, in February. In December, the company withdrew from the taxi business by selling a 49% stake in the "UT" corporation, established in cooperation with Uber, for about 60 billion won.
The strategy is to strengthen the artificial intelligence (AI)-based data solution business targeted at corporations while exiting the underperforming taxi, shared scooter, and airport limousine businesses. T Map Mobility considers the vast driving data of its 24 million users as its core asset and plans to generate revenue through businesses utilizing this data.
The ability to secure the company's profitability is expected to affect the IPO plan for this year. In 2021, T Map raised 400 billion won in investments, promising financial investors (FI) that it would pursue a listing in 2025. The hoped valuation of T Map Mobility was around 2 trillion won in 2022, but the current market estimates its worth to be significantly lower, around 1 trillion won.
The issue is the uncertainty surrounding whether the company can turn a profit this year. T Map Mobility recorded its highest revenue of 322.6 billion won last year, but its operating loss stood at 43.4 billion won, failing to escape the red. While revenue from data and solutions grew by 20.5% year-on-year, the impact of recently divested non-core subsidiaries significantly undermined profitability.
Sales in the first quarter of this year totaled 69.1 billion won, while the operating loss was 9.4 billion won. Although the loss margin is decreasing, industry assessments indicate that the chances of a quick return to profitability are low. If T Map Mobility does not succeed in becoming profitable, its IPO schedule is inevitably delayed.
A company official stated, "Once the non-core business is reorganized, we believe it will be possible to achieve profitability in the second half," adding that IPO work, including the selection of a lead manager, will commence thereafter.
T Map Mobility is outlining a blueprint to expand data-linked businesses centered around services that score users' driving habits, such as "driving scores," the AI location recommendation service "Where to Go," and the in-car infotainment system "T Map Auto." However, competition is intensifying as Naver and SOCAR have recently launched similar services, creating a challenge for T Map to secure user numbers and maintain a competitive edge through differentiated services.
An industry insider noted that "the data-centric revenue model needs to materialize for the IPO to elevate the company's valuation."