TravelPerk Raises $104M Funding from Softbank to Invest in AI Innovations
TravelPerk raised $104 million funding to invest in AI innovations and develop new products for enhancing customer experience.
Barcelona-based travel management startup TravelPerk raised $104 million in fresh funding led by SoftBank Vision Fund 2 and backed by existing investors Kinnevik and Felix Capital. According to the company, it will invest the new funds in artificial intelligence and develop new products for further enhancing customer experience.
“We have a clear focus: building the number 1 SaaS business travel platform for SMB and Mid-Tier companies in Europe and the US. 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,” said Avi Meir, CEO and co-founder of TravelPerk. “This latest investment comes when the winning tech companies are separating from the pack, further validating our investors’ commitment to our vision and strategy.”
“We are also incredibly grateful to our team of more than 1200 employees who enabled us to achieve such rapid growth and success together. We’ll continue to grow our workforce as we scale our presence across the US and Europe,” Meir added.
Having amassed approximately $427 million in funding prior to the latest infusion, TravelPerk’s financial trajectory unfolds through the fourth installment of its Series D round. Commencing in 2021 with a substantial $160 million injection comprising both debt and equity, the company proceeded to augment its resources with an additional $115 million in the subsequent year, labeled as a Series D-1 round.
TravelPerk’s AI-Driven Approach to Transform SMBs
At the core of TravelPerk’s operations are advanced AI technologies such as machine learning and neural networks. These cutting-edge tools are harnessed in the backend to streamline numerous manual tasks inherent in corporate travel. A notable example includes linking users with the most competitive prices for flights and accommodations.
“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,” said Stephen Thorne, investment director for SoftBank Investment Advisers.
TravelPerk said it increased revenue by more than 70% in 2023 while gross profit increased by 90% year over year.
“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,” added Akhil Chainwala, investment director at Kinnevik.
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