Klook IPO: S1 Breakdown

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I’ve been following Klook from a personal interest standpoint since 2019. That’s when me and my wife tried to start a company in the experiences space - the fun stuff you do when you get to a destination.

The idea originated out of a personal frustration. On our honeymoon we were supposed to swim with dolphins in the open ocean off Kona in Hawaii. It was cancelled the day of because the captain probably stayed up too late drinking martinis. After about 72 google searches and 14 phone calls, we failed to find another boat going out that day. Which sucked, since we only had two more days left on vacation before heading back to the Boston December tundra.

We finally booked a similar experience for the next day… and although it had capacity for 15 people, there were only 5 of us on this massive boat (one of the tourists was an incredibly hairy Dutch man in an ill fitting speedo, who insisted on wearing his snorkel mask from dock to dock, which has nothing to do with the business idea or monetization model, yet something I still think about often). This was where the idea fully clicked. Not only were we frustrated, but so was the boat owner, since once he left the marina, he had the same overhead (fuel, food, drinks, crew), and never got that unsold inventory back again.

We figured there had to be a better way to book things to do, in the moment, once you arrived in a new place. The hole at the center of this fragmented ecosystem was a lack of a Global Distribution System (GDS) - a real time availability highway that the hotel and airlines benefit from. Therefore, the experiences industry was stuck on paper and pen. Few had a core booking system, or system of record. And those that did, didn’t have great channels to push their open inventory through.

Net net, shit didn’t talk to each other.

So for three years, on nights and weekends, we tried to build a solution. We even moved to Florida where there was year round outdoor tourism to better our chances of success.

Our startup, Bubba Booking, didn’t make it. I’ve written about losing $209,640 of my own money in the process. Call it my real world MBA. But there are a handful of companies who kept pressing on, even through the dark days of COVID. Those include Viator (owned by TripAdvisor), GetYourGuide (PE backed out of Germany), Headout (VC backed out of NYC), and Klook (backed by Softbank out of Asia, and the subject of this piece).

It’s important to call out why our particular startup failed. From a unit economic standpoint, we were caught in an LTV to CAC dead zone. It would cost a pretty penny to acquire a customer, but they probably only went on vacation once or twice a year. And each time they went, they’d have to remember us, rather than going through the hotel concierge. And while people are def willing to spend more on vacation than in normal day to day life, we still had a low average ticket size, clipping 20% of the value from an average purchase of $180 (three tickets at $60 each). Oh, and you’d need to have inventory in whatever place they were going. So you’re playing on hard mode.

Experiencing this unit economics gut punch in real time was a big inspiration for starting mostly metrics, in addition to my SaaS focused day job (something that many readers might not realize).

So all this to say, while Klook may not be a house hold name, I wanted to write about their IPO partially out of nostalgia for a time where I was shaking hands with boat owners on splintered docks in the Florida summer sun (the type of heat that melts organs off your bones), and also because to a hammer, everything looks like B2B Enterprise SaaS. There are lots of B2C marketplaces out there that very much shape the way we experience (no pun intended) the world. And their business models are arguably even more fascinating. So let’s get into it.

Metrics below are presented on an LTM or last twelve months basis from September of 2025:

Unlike pure marketplaces, Klook runs a hybrid model - some products are third-party (they take a cut), others are first-party (they buy and resell). That makes revenue a noisy metric. Gross profit, on the other hand, reflects what they actually keep after supplier payouts and inventory costs. It’s a cleaner view of monetization across all transaction types - and a better proxy for operational efficiency.

So What’s the Real Take Rate?

If we estimate it two ways:

That ~6.6 point spread likely reflects:

Klook uses Gross Profit / GTV instead of Revenue / GTV because:

Klook makes money by taking a cut of what travelers book once they’ve reached their destination; everything from museum tickets and attraction passes to airport transfers and mobile data plans. Sometimes they act as a marketplace, collecting a commission. Other times, they operate as a retailer, selling the service directly. The result is a hybrid monetization model that blends platform fees, product margins, and supplier upsells.

Here’s how it works:

As we mentioned above, net revenue take rate ≈ 18%. And Gross Profit over GTV sits at 11.2%. Klook prefers the latter. It reflects the true value retained after supplier payouts and direct costs and what they have left to run their business (OPEX).

Klook doesn’t want to be your hotel or flight provider; it wants to be the platform you use once you land. That puts it in an interesting middle layer of the travel stack, between the big OTAs (like Booking.com) and local tour operators.

Here’s how they stack up against some familiar names:

In short: Klook isn't fighting Booking.com on hotels or Airbnb on homes. It's carving out the high-frequency, impulse-driven layer of the traveler journey, and doing it with an Asia-first lens most global players haven’t figured out.

Klook’s financial arc is a case study in post-COVID rebound, layered with a push toward margin discipline and platform leverage. After weathering a brutal travel freeze, the company has emerged with both volume and unit economics on the rise, and signs that the model scales as intended.

Over the last twelve months (ending Q3 2025), Klook generated $3.04B in GTV, up 34% from the prior year. That volume translated into $540M in revenue (+40% YoY) and $340M in gross profit (+54% YoY), meaning not only are people booking more, but Klook is capturing more value per transaction.

That dynamic shows up in the improving monetization ratios:

This margin expansion is likely driven by two levers:

On the bottom line, Net Loss narrowed to -$17M, a significant improvement from -$47M the prior year. More importantly, Adjusted EBITDA flipped positive to $3.5M, marking the company’s first brush with breakeven.

In plain terms: Klook is starting to show operating leverage. They’re converting incremental bookings into disproportionately higher gross profit, and they’re keeping more of that profit as it moves down the P&L.

The company has $164M in cash on the balance sheet, enough to give them some flexibility, but given their global expansion ambitions and margin profile, it's not an excess war chest. That cash balance is one reason this IPO isn’t just a milestone - it’s a top-up.

Klook’s S-1 doesn’t break out post-IPO ownership in full, but the pre-filing cap table reveals a familiar cast of heavyweight investors, and some signs this IPO has been a long time coming.

CEO and co-founder Ethan Lin still holds significant voting power, though the filing hints at a dual-class share structure to preserve leadership alignment. That setup mirrors what we’ve seen with other Asia-based tech IPOs… investor liquidity, but founder grip.

For all the growth and momentum, Klook’s story isn’t without turbulence. Their model is asset-light, but the underlying market is heavy with complexity (geopolitical, logistical, and financial).

Roughly 80% of Klook’s business is tied to Asia-Pacific travel flows. That gives them a powerful moat in a fragmented region, but it also creates macro risk concentration. Currency swings, border policies, and regional shocks (e.g. a China slowdown or Japan tourism squeeze) could ripple through the model fast.

Klook’s bookings are mostly short-term, leisure-driven purchases… the kind of spend that drops off when consumer confidence dips. There’s no recurring revenue. There’s no contract lock-in. A recession or even a bad news cycle could hit volume hard.

At ~11% gross profit over GTV, Klook needs sustained GMV growth to show real operating leverage. The platform is edging toward breakeven, but any slip in bookings or supplier payouts could swing them back into loss territory.

As a reminder, Uber’s take rate is in the +20% range. Airbnb is in the +15% range.

However, you do expect them to carve back some margin when it comes to customer support:

Klook runs a mix of marketplace and 1P logistics across 490 cities. That means managing suppliers, payments, fulfillment, support, and localization in dozens of languages and currencies. Scaling this operational footprint isn’t cheap, or easily automated.

And you can’t be messing up people’s vacation plans last minute.

Suppliers can list elsewhere. Consumers can comparison shop on Booking, Trip.com, or even Google. Klook’s mobile UX and localized inventory help, but the moat is wide, not deep. Loyalty may be driven more by convenience than true stickiness.

LTV is getting better, but it’s not what you’d get from a consumer subscription business.

Klook’s filing comes as IPO windows are opening, but barely. They’re profitable-ish, which helps. But they’re also a travel company coming off a revenge-tourism wave. If public markets sniff a peak-cycle story, valuation could get capped. They’re also trying to sneak in at the tail end of the government shut down that B2B travel company Navan IPO’d into with mixed results.

Klook is going public via American Depositary Receipts (ADRs), meaning investors won’t own common shares directly - they’ll hold a proxy instrument issued by a U.S. depositary bank. That’s standard for foreign listings, but it comes with some baggage:

On top of that, Klook reports financials using IFRS, not U.S. GAAP. That makes comps trickier and creates room for accounting deltas around revenue recognition, lease treatment, and cost capitalization.

None of this is a dealbreaker, but for U.S. investors, it adds a layer of transparency drag that doesn’t exist in a domestic IPO.

Klook hasn’t set terms yet, but we can back into a reasonable range by looking at how the market values scaled travel platforms and adjacent marketplaces.

Assuming a ~4x to 5x EV/Revenue multiple (in line with asset-light, growth-stage travel marketplaces like GetYourGuide and historical Booking.com ranges), that would put Klook’s enterprise value at $2.5B–$3B.

That aligns with — and likely exceeds — their last private valuation of ~$1.6B in 2021. And it gets them over the pref stack of ~$1B.

If you believe they’ll be valued off of net revenues:

If you believe they’ll be valued off of gross profits:

Given their lack of profitability and strong, but not bonkers, growth, I’d expect them to be valued at something closer to gross profits, perhaps in the $2.5B to $3.5B range.

Klook doesn’t want to be how you fly or where you sleep. They want to be all the moments in between… what to do, how to get around, and how to get online.

This isn’t a travel agency dressed up as a marketplace. It’s more like a transactional operating system for in-destination logistics, one designed around the quirks and constraints of Asia-Pacific: fragmented supply, mobile-native users, and deeply localized payments. Klook wins by making all that feel seamless.

Is it a perfect business? No. The margins are tight, the take rate is low-ish, the cash cushion isn’t huge, and the IPO structure (ADR + IFRS) adds friction for U.S. investors. But there’s real platform leverage here, and early signs of margin compounding that marketplaces rarely get credit for.

And if nothing else, they certainly blow the doors off of what my startup, Bubba Booking, was able to do!

Wishing you find something fun to do when you arrive at your destination

CJ