Skift Take
Water Hospitality is a Korean start-up that acquired traction in Japan and now prepares to use its hotel and vacation rental management services in other markets. If you can make it in Osaka, you can make it anywhere.
Sean O’Neill, Skift
This week, travel start-ups revealed more than $46 million in funding.
>> H2O Hospitality, a business that handles travel accommodation on behalf of owners, has raised approximately $30 million (about 34 billion Korean won) in a Series C round.
Kakao Investment and the state-run Korea Development Bank led the round. Other investors consist of Gorilla PE, Intervest, NICE Investment, and the Kejora-Intervest Growth Fund.
The startup confirmed it had raised “more than $45 million” because its founding in 2015.
H2O, based in Seoul, South Korea, offers its property management service usually on a white-label basis. It currently runs about 7,500 accommodations in Tokyo, Osaka, Seoul, Busan, and Bangkok. But it has bigger dreams. Previously this year, it obtained the contactless hotel service company ImGate and a local start-up serving the developer economy called Replace.
The company claims it can slash fixed costs while enhancing sales with its software and procedures. For a profile of the business, see Skift’s post: Why Japan’s Vacation Leasings Are Hiring Tech-Savvy Management Companies.
>> Headout, a service offering same-day reservations for tours and activities in whatever area a traveler is when using the mobile app, has raised $12 million.
Glade Brook Capital led the round. Version One Ventures, Nexus Endeavor Partners, FJ Labs, 500 Start-ups, Haystack, Ludlow Ventures, Espresso Capital, and Practical VC likewise took part.
The startup has declared to offer Uber-like convenience with HotelTonight-esque reduced rates and quick reservation, meaning that it guarantees “exclusive” last-minute discount rates and faster mobile checkout than other channels. Varun Khona is co-founder and CEO, and a 30-year-old digital nomad and structure Headout while taking a trip the world. The business is based in New York but has its largest workplace in Bangalore.
>> Tickitto, a business-to-business market for ticketed events and experiences, closed a $4.5 million seed round.
Vorwerk Ventures led the round. TriplePoint, SeedCamp, and angel financiers also participated.
While not strictly a travel start-up, the business may interest travel brands and online resellers. Tickitto takes on the difficulty of sourcing ticketed events by utilizing comparable principles to those that have actually transformed consumer banking. In other words, it claims to make it much easier for a brand name to include ticket sales for external events to their websites and apps.
One travel sector business using Tickitto is Servantrip, a business-to-business consolidator in the tourist sector. Servantrip offers tickets and events through Tickitto’s API [application programs interface, or basically an information exchange technique] to add to its stock from other sources. Partners can then resell the stock.
CEO Dana Lattouf established the company. She was previously a technology consulting analyst at Accenture.
>> Traveloka, the Indonesia-based online travel agency start-up, eliminated talks on a potential $400 million deal with a blank check company backed by the billionaire founder of PayPal Peter Thiel. The agency likewise invested in the Series B funding round of Sirclo, a software and consulting firm based in Jakarta that makes it possible for small business owners to easily open and handle numerous online stores, according to DealStreetAsia.
>> Travelport teamed with Amazon Web Services to support travel start-ups.
| Company | Stage | Lead | Raise |
|---|---|---|---|
| Water Hospitality | Series C | Kakao, Korea Advancement Bank | $30,000,000 |
| Headout | n/a | Glade Brook Capital | $12,000,000 |
| Tickitto | Seed | Vorwerk Ventures | $4,500,000 |
Skift Cheat Sheet:
We define a start-up as a company formed to check and develop a repeatable and scalable service design. Couple of business fulfill that definition. The rare ones that do often draw in venture capital. Their financing rounds can be found in waves.
Seed capital is cash used to start a business, typically led by angel investors and buddies or family.
Series A funding is usually drawn from venture capitalists. The round intends to assist a start-up’s creators make sure that their item is something that consumers truly want to buy.
Series B financing is primarily about venture capitalist firms helping a business grow quicker. These fundraising rounds can help in hiring competent workers and developing cost-effective marketing.
Series C funding is generally about assisting a business expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and personal equity companies frequently get involved.
Series D, E and beyond These generally fully grown companies and the funding round may assist a company prepare to go public or be acquired. A range of types of private investors might participate.