Corporate travel management platform TravelPerk has announced a $104 million investment in a Series D-1 extension round.
The investment in the Spain-based company, which values it at $1.4 billion, was led by SoftBank Vision Fund 2 with existing investors Kinnevik and Felix Capital also participating.
The funding builds on a $115 million Series D investment announced in early 2022, when former Booking.com CEO Gillian Tans and General Catalyst’s Joel Cutler joined the TravelPerk board.
Prior to that, the company landed $160 million also in Series D in April 2021.
TravelPerk said it plans to put the funds towards boosting its platform with new inventory capabilities as well as the launch of new business travel services and further product automation driven by artificial intelligence.
Avi Meir, co-founder and CEO of TravelPerk, said, “We have already realized some major AI efficiency gains, particularly in customer service where we’ve reduced our costs and improved efficiencies by 50%. This was primarily driven by the automation of manual processes, for example flight change requests, so our agents can better service customers by phone or live chat when they need it most. New applications of AI to expect soon include streamlining travel admin reporting processes, and providing additional value to travellers during their trips via our mobile app.”
He added: “We have a clear focus: building the number one [software-as-a-service] business travel platform for SMB (small- to medium-sized businesses) and mid-tier companies in Europe and the [United States]. I’m delighted that SoftBank has backed that vision, and that our existing investors continue to support our responsible and thoughtful approach to long-term growth. This latest investment comes during a time when the winning tech companies are separating from the pack, and it further validates our investors’ commitment to our vision and strategy.”
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TravelPerk said it increased revenue by more than 70% in 2023 while gross profit increased by 90% year over year.
Stephen Thorne, investment director for SoftBank Investment Advisers, said, “Within the enormous global business travel market, SMBs have remained a largely underserved segment. TravelPerk continues to innovate, integrating AI across the product stack to deliver a world-class experience for customers and travelers. We are excited to partner with TravelPerk and support the next stage of growth.”
Akhil Chainwala, investment director at Kinnevik, added, “The TravelPerk team has continued to deliver on their ambitious plans, irrespective of an ever-changing external environment. Compared to the pre-pandemic period, the company has achieved a 10-fold increase in volumes and rapidly innovated on product, resulting in improved customer experience and a doubling of monetization. Most recently, we have been excited to see significant automation efficiencies set a scalable foundation for future growth.”