Phone lease may be first $1bn idea in Hong Kong

HONG Kong may soon get its first billion-dollar start-up, thanks to a 25-year-old entrepreneur whose company leases phones to travellers.

Tink Labs was raising about $40-million (about R552-million) and aiming for a valuation of more than $1-billion, people familiar with the matter said. The fundraising was not complete and the final figures could change, said the people, asking not to be identified.

Founded in 2012 and led by CEO Terence Kwok, Tink Labs has more than doubled its staff to 300-plus people over the past year. The financing will go towards staff and expansion costs, and is targeting institutional investors.

In September, Tink Labs raised $125-million for a valuation of more than $500-million, with backing from Foxconn Technology Group, Kai-Fu Lee’s Sinovation Ventures and Cai Wensheng, the chairman of Meitu.

While China has an evergrowing bevy of so-called unicorns, Hong Kong start-ups have been absent from the list, according to CB Insights. Hong Kong doesn’t have a single start-up valued at $1-billion-plus, although it has an advanced economy and is one of Asia’s financial capitals.

That dearth stems partly from a cultural norm that favours stable jobs in established companies over risky go-it-alone propositions.

At the same time, businesses often targeted by start-ups — such as retail — are controlled by a handful of local billionaires and their conglomerates.

Tink Labs, which puts smartphones in hotel rooms, is aiming to be available in one million rooms by 2018, according to documents seen by Bloomberg.

The company’s phones can be used by hotel operators to promote their services, either in the room or when taken out by lodgers as a free-to-use city guide and mobile device.

Tink has about 120 000 smartphones, named Handy, installed in hotel rooms operated by major groups.

“Obviously they have some challenges because it’s not suited for every hotel,” Sinovation’s Lee said. “Within China, travellers probably don’t have as much to gain. So it’s ideally suited for Hong Kong, Singapore, Switzerland and countries like that.”

Foxconn, which invested via FIH Mobile, is working with Tink to provide a new version of its smartphone, which will allow users to control in-room entertainment. —

In China, travellers probably don’t have as much to gain. So it’s ideally suited for Hong Kong, Singapore and Switzerland