Klarna Acquires Inspirock: Expanding into Travel Planning

Klarna Expands Services into Travel Planning with Inspirock Acquisition

Klarna, a globally recognized retail bank, payments provider, and shopping platform, has broadened its scope of services to include travel planning. This expansion is marked by the recent acquisition of Inspirock.

Inspirock: AI-Powered Trip Planning

The announcement, made on Friday, details Klarna’s purchase of Inspirock, an online trip planning service. Inspirock utilizes artificial intelligence and localized knowledge to assist Klarna’s 90 million users in discovering destination offerings and constructing customized travel itineraries. The financial specifics of this transaction have not been publicly revealed.

Founded in 2012 by Anoop Goyal and Prakash Sikchi, Inspirock is headquartered in East Palo Alto. The platform currently serves over 25 million travelers each year, aiding them in planning trips aligned with their interests and exploring potential travel destinations.

In 2015, Inspirock secured $3 million in venture capital funding, with MakeMyTrip, a prominent Indian travel booking website, leading the investment round. According to David Sandstrom, Klarna’s chief marketing officer, the complete Inspirock team will be integrated into Klarna’s operations.

“Inspirock’s core mission has always been to streamline the trip planning process, making it both rapid and enjoyable,” stated Goyal. “By joining forces, we can effectively realize Klarna’s vision of delivering a seamless shopping experience within the travel sector, fostering innovation. Together, Klarna and Inspirock will offer exceptional inspiration, practical tools, and engaging shopping experiences, ensuring that the planning phase is as rewarding as the journey itself.”

A Year of Strategic Acquisitions for Klarna

This year has been notably active for Klarna, currently valued at $45.6 billion. The Inspirock acquisition represents the company’s fifth acquisition of the year, following the earlier purchases of Apprl, Stocard, HERO, and Toplooks.ai.

Sandstrom explained that the overarching strategy behind these acquisitions has been to facilitate the creation of content on a large scale. He expressed optimism regarding the potential to integrate inspiration, curation, and social shopping elements, which are central to Klarna’s current initiatives.

Sandstrom posits that e-commerce is evolving from a solitary, transactional experience to one that incorporates emotional connection. He believes the future of e-commerce will be heavily influenced by social interaction, peer connections, in-depth review analysis, and engagement with influential figures.

“We have made substantial investments in content creation and curation, which will empower our entire customer base to contribute content,” he added.

Addressing Consumer Pain Points in Travel

While Klarna’s entry into the travel industry may appear unconventional, Sandstrom emphasizes that the acquisition of Inspirock is a direct response to identified consumer needs. Specifically, it aims to resolve the challenge of planning activities after flights and accommodations have been booked.

Furthermore, the integration will allow consumers to purchase tickets for events and attractions utilizing Klarna’s “buy now, pay later” service. Inspirock’s integration also presents an opportunity to connect Klarna’s network of 250,000 retail partners with travelers visiting their regions.

Growth in the Online Travel Market

Currently, approximately 66% of global travel bookings are completed online, a figure projected to rise to 72% by 2025. The global online travel agent market is anticipated to reach $833.5 billion by that year.

Klarna’s internal research indicates that travel ranks as a top priority for discretionary spending for 21% of individuals worldwide in 2021.

“Our data reveals that 42% of people experience frustration when planning their trips,” Sandstrom noted. “Numerous excellent platforms already exist for booking flights and hotels, and we are not competing in that space. Instead, we are focused on connecting local retailers and merchants with the trip planning experience, enabling consumers to effortlessly plan their activities and fully immerse themselves in a city’s offerings.”