Selfbook Raises $25M to Revolutionize Hotel Booking

Selfbook Secures $25 Million in Series A Funding

Selfbook, a startup specializing in hotel payment software, has announced the successful completion of a $25 million Series A funding round. This investment was spearheaded by Tiger Global Management.

Investment Details and Company Valuation

Valia Ventures, Fin Venture Capital, early Stripe employee and investor Lachy Groom, and several strategic angel investors also participated in the financing.

The funding round has resulted in a company valuation of $125 million, bringing the total funding raised by Selfbook to $30 million. According to co-founder and CEO Khalid Meniri, this valuation signifies a substantial increase – nearly 16x – compared to the $2 million seed round secured last quarter.

Investors including Better Tomorrow Ventures, Abstract Ventures, TenOneTen Ventures, and 9Yards Capital contributed to this latest round, with many participating with “super pro rata” allocations.

Selfbook's Core Technology and Benefits

Selfbook’s software empowers hotels to accept streamlined, “one-click” payments directly through their websites. This system is designed to minimize fraud and reduce the incidence of chargebacks.

The company, founded in September 2020 as a transformation from a consumer travel application to a B2B enterprise, positions itself as the “Shopify for travel.” It operates at the convergence of the hospitality and fintech sectors.

Hotels can integrate the technology with a single line of code, enhancing the booking experience within their current reservation systems, as stated by Meniri.

Growth and Customer Base

Since its initial launch with one hotel in April, Selfbook has secured contracts with approximately 90 hotels, with 15 currently live.

Its clientele includes establishments across various locations, such as Le Pigalle in Paris, Eden Rock St Barths, and locations of The LINE in Los Angeles, Austin, Texas, and Washington, D.C. The company’s primary focus remains on the U.S. and EU markets.

Over the last six months, the platform has experienced a “10x” growth in users utilizing single sign-on and digital wallets. Furthermore, 67% of bookings were completed using digital wallets on mobile devices.

Payment Options and Features

Selfbook asserts that its software is the sole hotel payment technology supporting digital wallet integration, including Apple Pay, Google Pay, PayPal, and buy now, pay later options. It also accommodates traditional debit and credit card transactions.

Beyond enabling “one-click” payments, Meniri highlights that Selfbook’s software provides direct booking links and intelligent merchandising capabilities.

The software also facilitates the bundling of multiple services – such as restaurant reservations, spa treatments, and activities – into a unified payment process. This capability is intended to drive increased upselling opportunities for hotels and, consequently, boost revenue.

Future Plans and Team Expansion

Currently, Selfbook employs 50 full-time staff, a significant increase from the four employees at the start of the year. The newly acquired capital will be allocated towards further hiring and the expansion of partnerships with fintech companies and existing hospitality systems.

From B2C to B2B: The Company's Evolution

Previously, Selfbook operated as a B2C platform, offering hotel guests a booking service for over 3,000 hotels through its SIX Travel app. To support these bookings, the company developed its own advanced transaction software, recognizing a gap in the market for simple hotel booking APIs.

Meniri explained to TechCrunch that when the pandemic significantly impacted the hospitality sector, they decided to democratize their payment and transaction engine to enhance the direct hotel booking experience for all. This led to the relaunch of the company as Selfbook, with the aim of aiding the hotel industry’s recovery.

Investor Perspectives

Alex Cook, a partner at Tiger Global, believes Selfbook is not only modernizing the hotel booking process but also has the potential to increase conversion rates for hotel operators and improve the overall guest experience.

Lachy Groom, former head of Stripe issuing, emphasized that Selfbook addresses a significant pain point in the industry. He stated that the platform is “a joy to use” and represents the future of hotel payments.

Personal experience highlights the need for this technology, as a recent difficult cancellation process through a third-party provider underscored the complexities of existing systems. Any solution that simplifies and secures direct hotel bookings is a welcome development.

Recent Funding in the Payment Space

Last week, reports surfaced regarding Citcon, a mobile wallet payment provider, securing $30 million in funding during a Series C round co-led by Norwest Venture Partners and Cota Capital.