Catcha Digital has made 14 acquisitions across digital media, B2B expos, and software, with about $30m revenue and $6m EBITDA.
It buys roughly one of every 100 companies reviewed, rejecting most on valuation expectations, then culture fit.
CEO Eric Tan says listing makes acquisitions harder despite easier capital access, and he would stay private longer.
Catcha Digital's 14 acquisitions build a Southeast Asian compounder
Catcha Digital is building a permanent home for market-leading Southeast Asian companies too small for an IPO or private equity and too big for an individual buyer. It runs digital media and B2B trade expos as separate pillars, with central M&A and decentralized operations. The group has made 14 acquisitions and generates about $30m in revenue and $6m of EBITDA, buying roughly one company in every 100 it reviews.
Takeaways
Catcha targets SMEs too small for PE. Catcha targets high-quality Southeast Asian companies with succession issues that are too small for an IPO or private equity fund and too big for an individual buyer. It has completed 14 acquisitions and owns market-leading digital media and B2B expo businesses.
Catcha runs decentralized pillars with central M&A. An HQ team handles M&A and corporate development, while each pillar has its own head and management team. Capital allocation and treasury sit centrally. Tan says Catcha does not want to be the smartest person in the board meeting.
Catcha buys about one in 100 deals. Deals die first on valuation expectations and second on culture fit. The team screens sectors by asking competitors and likes hearing rivals hate competing with a company but respect it. Catcha did eight deals in 18 months and has walked away over culture red flags.
Listing makes deals harder and easier. Tan says being public eases capital access and gives sellers default trust. It also makes every acquisition public and restricts deal size, while the market reacts in real time. If he could go back, he would stay private longer.
Catcha learns from Western compounders but localizes. Tan names Danaher, Roper, LVMH and Constellation Software among roughly 15 companies he follows, plus examples from China and India. Catcha has no single North Star. It breaks down parts of its business and learns from companies strong in each area, then localizes.
Catcha targets steady 20-25% growth. Tan aims for 20% to 25% growth across the businesses and prefers betting on a few semi-independent companies, like a diversified portfolio of stocks, rather than one thing. Online media scales fast but changes fast, so live events hedge the online business.
Catcha's portfolio
Digital media is about 85% of the group and close to 250 employees. It began with iMedia at roughly $6m in revenue and is on track for about $25m, with 16-25% organic growth.
B2B expos, entered last year, include Malaysia's largest agriculture and food and beverage shows. It also owns a construction show. Catcha took a 60% stake, and about 80% of next year's revenue is locked in when a show ends.
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On this episode 3
Show 1
The software pillar has one company, a CRM for property developers. Catcha follows a Constellation Software-like thesis but uses earn-outs because Southeast Asian software businesses still grow 20-40% a year.
Catcha sticks to three pillars for now but is hunting a fourth.