[THE INVESTOR] E-commerce giant TMON plans to spin off its lucrative tourism business in a bid to attract more capital, according to industry sources on Aug. 21.

Its sales manager BDA Partners is reportedly in talks with a group of private equity firms for investing in the proposed subsidiary. 

“A number of PEFs have shown interest in our tourism platform,” a TMON spokesperson told The Investor, while declining to give further details.

The firm, however, is not planning to hand over management rights to future investors, saying it is looking at selling a maximum 30 percent stake.

TMON has been aggressively pushing its tourism unit, which opened in 2011 and now has around 17 million users.

In April, the firm signed contracts with 12 travel agencies to provide a wider range of plane fares. TMON also acquired two travel related startups in 2016 and 2017 to further expand its business. Sales of its tourism business increased by 25 percent from 2014 to 2016, during which time it attracted 50 billion won (US$44.35 million) from Simone Investment Managers, a subsidiary of ODM handbag maker Simone, and another 80 billion won from Singapore sovereign wealth fund GIC.

TMON’s edge lies in offering diverse traveling products, according to the firm.

“We cater to the different needs of our clients, from group tours to individual travels. We believe this strategy is appealing to our investors,” the TMON spokesperson said.

Meanwhile, regarding reports of a delay in the firm’s IPO plans, the company said going public is not on the cards this year.

“An IPO was never in our plans for this year,” said the spokesperson. “For now, we are concentrating on getting investments to expand.”

By Song Seung-hyun (ssh@heraldcorp.com)