ASCARO invites investors to partake in the ASCARO Padel & Social Club expansion journey, with as little as RM4,550 on equity crowdfunding platform pitchIN.
KUALA LUMPUR, 20 February 2025 – ASCARO has officially launched an equity crowdfunding (ECF) campaign on pitchIN to raise RM20 million to execute ASCARO’s plans to open four state-of-the-art padel clubs across Kuala Lumpur and Jakarta by 2025.
Starting at RM4,550 – the lowest-tier of investment – investors will also be given an additional perk of free membership at ASCARO Padel & Social Club with higher investment amounts.
“Padel has grown fast in Southeast Asia and ASCARO is going beyond merely filling a market gap. We are crafting an entirely new paradigm for urban recreation and networking, creating a unique blend of athletic pursuit and luxury lifestyle,” said Daniel Liljekvist, Managing Director and Partner at ASCARO. “You can be part of this wave and leverage ASCARO’s unique platform in accelerating the growth of padel in the region.”
WHY PADEL? THE BASIC NUMBERS
While padel has been steadily building a reputation on the global sports scene with 25 million players across 110 countries, the potential for padel in Southeast Asia is immense yet largely unrealized for this fast-paced social sport that blends the best of tennis and squash. Globally, there are 20,000 padel clubs while there are only about 30 clubs so far in Kuala Lumpur, Bangkok and, Jakarta combined.
The promising emerging markets region boasts rapid economic growth, with the Asian Development Bank forecasting the region’s economy to grow by 4.5% and 4.7% in 2024 and 2025 respectively. This could signal rising disposable incomes leading to demand for premium experiences to continue to increase. Furthermore, the appetite for sports and social activities in these markets are voracious, with Malaysia at 48% for a weekly sports participation rate (International Journal of Human Movement & Sports Sciences, 2024) and Thailand with a 25% growth in mass participation sports events in 2024 (PR Newswire, March 2024).
ASCARO’s pioneer club at 1 Utama has set the stage with its impressive performance of turning a profit within its first year with average utilization rate of less than 50%, which increased to a steady state of over 90% by mid 2024. This is further highlighted with ASCARO’s revenue growth from RM1.8 million in 2023 to RM4 million in 2024.
What has propelled ASCARO’s success so far has been its diversified revenue model with robust streams such as memberships, court rentals, events, sponsorships, coaching and merchandise – ensuring financial resilience.
WHAT INVESTORS NEED TO KNOW
ASCARO’s expansion plan comes with solid financial foundations. With increased interest from corporate sponsors, coupled with cost reduction from spreading overheads over multiple clubs, each ASCARO Padel & Social Club is expected to comfortably generate an average of RM3 million in annual cashflow. This will enable ASCARO to continue launching new clubs at an expected cost of RM3-5 million per club. The projected number is 15 clubs by 2027, with an expected group-wide profit of over RM40 million. By this time, a clear exit strategy has also been charted, targeting a sale or an IPO (initial price offering) at a valuation of at least RM400 million, based on a relatively conservative multiple of 10x earnings.
With the pre-money valuation of RM91 million, this would make the RM20 million investment equivalent to a 18.02% stake, where investors can expect to make a 4x return on their money within 3 to 4 years.
For more risk-averse investors, however, a fixed investment is presented as an alternative offer: a preferred share option with 15% annual dividends for 4 years and a redemption at 150% of the investor’s initial investment at the end of 4 years. This is equivalent to approximately 2x return in 4 years.
Finally, what this fundraising exercise will achieve will be the building blocks of the ASCARO experience – intersecting sport, luxury, and lifestyle. Helming this journey forward is a team of seasoned professionals with backgrounds in fashion, luxury hospitality, marketing and technology, supported by high-profile advisors and investors.
The Premium Padel Experience is equipped with Spanish black courts from Padel Galis, professional coaching and tournaments and an app. Luxury wellness facilities will be introduced with high-end gyms, yoga and meditation spaces and spa and recovery services. As for the social aspect of the space, gourmet restaurants and cocktail bars together with networking lounges and co-working areas would be created.
Stan Zabolotsky, Co-Founder added: “ASCARO stands for ‘And So Came A Revolution’. Not only has ASCARO pioneered padel in Malaysia, it has also meticulously crafted a unique approach that seamlessly blends the worlds of sports and socializing. Through this crowdfunding initiative, we are inviting our community to become co-owners of this exciting next step in our journey.”
To learn more about ASCARO’s Equity Crowdfunding campaign on pitchIN, and how investors can take secure their stake in this exciting venture, visit https://www.pitchin.my/equity/ascaro-sea
