TravelPerk grabs $21M to make reserving enterprise journeys suck much less – TechCrunch
TravelPerk, a Barcelona-based SaaS startup that’s constructed an end-to-end enterprise journey platform, has closed a $21 million Collection B spherical, led by Berlin-based Goal World and London’s Felix Capital. Earlier buyers Spark Capital and Sunstone additionally participated within the spherical, alongside new investor Amplo.
Once we final spoke to the startup again in June 2016 — because it was saying a $7M Collection A — it had simply 20 prospects. It’s now boasting greater than 1,000, name-checking “high growth” corporations akin to Typeform, TransferWise, Outfittery, GetYourGuide, GoCardless, Hotjar, and CityJet amongst its purchasers, and touting income progress of 1,200% year-on-year.
Co-founder and CEO Avi Meir tells us the startup is “on pace” to generate $100M in GMV this 12 months.
Meir’s founding thought, again in 2015, was to create a rewards program primarily based round dynamic budgeting for enterprise journeys. However after conversations with potential prospects about their pain-points, the crew shortly pivoted to focus on a broader bundle of enterprise journey reserving issues.
The mission now could be summarized as making an attempt to make all the enterprise journey journey suck much less — from reserving flights and inns; to admin instruments for managing insurance policies; analytics; buyer help; all performed inside what’s billed as a “consumer-like experience” to maintain end-users comfortable. Primarily it’s providing end-to-end journey administration for its goal enterprise customers.
“Travel and finance managers were frustrated by how they currently manage travel and looked for an all in one tool that JUST WORKS without having to compare rates with Skyscanner, be redirected to different websites, write 20 emails back and forth with a travel agent to coordinate a simple trip for someone, and suffer bad user experience,” says Meir.
“We understood that with the intention to repair enterprise journey there is no such thing as a approach round however diving into it head on and create the world’s greatest OTA (on-line journey company), mixed with the most effective in school admin instruments wanted with the intention to handle the journey program and a shopper grade, good person expertise that vacationers will love. So we turned a full blown platform competing head on with the massive TMCs (journey administration corporations) and the legacy company instruments (Amex GBT, Concur, Egencia…) .”
He claims TravelPerk’s one-stop enterprise journey store now has the world’s largest bookable stock (“all of the journey agent stock but in addition reserving.com, Expedia, Skyscanner, Airbnb… virtually any flight/lodge on the web — solely we’ve got that”).
Goal customers at this stage are SMEs (as much as 1,500 workers), with tech and consulting at present its strongest verticals, although Meir says it “really runs the gamut”. Whereas the present focus is Europe, with its main markets being the UK, Germany and Spain.
TravelPerk’s enterprise mannequin is freemium — and its pitch is it could save prospects greater than a fifth in annual enterprise journey prices vs legacy company instruments/journey brokers because of the dearth of commissions, free buyer help and many others.
Nevertheless it additionally presents a premium tier with extra flexibility and perks — akin to company lodge charges and a journey agent service for group bookings — for these prospects who do need to pay to improve the expertise.
On the competitors entrance the principle rivals are “old corporate travel agencies and TMC”, in response to Meir, together with bigger gamers akin to Egencia (by Expedia) and Concur (SAP firm).
“There are a few startups doing what we are doing in the U.S. like TripActions, NexTravel, as well as some smaller ones that are popping up but are in an earlier stage,” he notes.
“Since our first round… TravelPerk has been experiencing some incredible growth compared to any tech benchmark I know,” he provides. “We’ve found a stronger product market fit than we imagined and grew much faster than planned. It seems like everyone is unhappy with the way they are currently booking and managing business travel. Which makes this a $1.25 trillion market, ready for disruption.”
The Collection B will likely be put in the direction of scaling “fast”, with Meir arguing that TravelPerk has landed upon a “rare opportunity” to drive the market.
“Organic growth has been extremely fast and we have an immediate opportunity to scale the business fast, doing what we are doing right now at a bigger scale,” he says.
Commenting in a press release, Antoine Nussenbaum, associate at Felix Capital, additionally spies a serious alternative. “The corporate travel industry is one of the largest global markets yet to be disrupted online. At Felix Capital we have a high conviction about a new era of consumerization of enterprise software,” he says.
Whereas Goal World basic associate Shmuel Chafets describes TravelPerk as “very well positioned to be a market leader in the business travel space with a product that makes business travel as seamless and easy as personal travel”.
“We’re excited to support such an experienced and dedicated team that has a strong track record in the travel space,” he provides in a supporting assertion. “TravelPerk is our first investment in Barcelona. We believe in a pan-European startup ecosystem and we look forward to seeing more opportunities in this emerging startup hub.”
Flush with contemporary funding, the crew’s subsequent job is much more recruitment. “We’ll grow our teams all around with emphasis on engineering, operations and customer support. We’re also planning to expand, opening local offices in 4-5 new countries within the upcoming year and a half,” says Meir.
He notes the corporate has grown from 20 to 100 workers over the previous 12 months already however provides that it’s going to proceed “hiring aggressively”.