Barcelona-based startup TravelPerk has successfully raised $104 million in a recent equity round led by SoftBank Vision Fund 2 and participation from existing investors Kinnevik and Felix Capital. This funding boost brings TravelPerk’s valuation to $1.4 billion, marking a substantial increase from the $1.3 billion valuation in its previous funding round a year ago.
TravelPerk specializes in automating corporate travel and expenses by integrating artificial intelligence (AI) technologies, including machine learning and neural networks. The platform streamlines manual tasks associated with corporate travel, such as identifying optimal flight and accommodation options, leading to improved efficiency and cost savings for businesses.
CEO and co-founder Avi Meir emphasized the transformative impact of AI on the corporate travel sector, distinguishing TravelPerk’s approach from traditional players like American Express or Expedia. Meir highlighted that integrating technology is crucial for scalability in the travel industry, enabling the automation of back-office processes.
SoftBank, a key participant in this funding round, invested $70 million in TravelPerk, underlining the growing interest in companies leveraging AI to disrupt corporate travel norms. The latest investment will focus on AI development and expanding the platform’s product offerings.
Meir downplayed the current AI buzz, suggesting that many AI experiments appear more for show than practical adoption to address real challenges in the travel business. In contrast, TravelPerk boasts a lean operating model, achieving a profit margin of 60% in the previous year.
The funds will also support TravelPerk’s plans for accelerated growth, building on the momentum generated in 2023. Despite facing challenges during the COVID-19 pandemic, the company experienced significant growth as international travel rebounded with vaccine rollouts.
Meir shared that 2023 was a year of “hyper growth” for TravelPerk, achieving a revenue increase of over 70% year-over-year, reaching an annualized revenue of $100 million. The company prioritized hiring during this period, adding 50% of its staff in the last two years.
While there are no immediate plans for an initial public offering (IPO), Meir indicated that TravelPerk is prepared for such a move when the time is right. The company’s commitment lies in building a lasting entity that will thrive for decades, with the recent hiring of CFO Roy Hefer, who brings IPO experience, reinforcing its strategic vision.
