Klook Raises $200M in Funding During COVID-19 | Travel News

Klook, a travel activities platform headquartered in Hong Kong and supported by SoftBank Vision Fund, has announced the completion of a $200 million Series E funding round. This latest investment brings the total amount of capital raised by the company to $720 million.

Aspex Management, an investment fund concentrating on the Asia Pacific region, spearheaded the funding round. They were joined by current investors including Sequoia Capital China, Softbank Vision Fund 1, Matrix Partners China, Boyu Capital, and several new investment firms.

Successfully obtaining significant funding during a period when the COVID-19 pandemic is impacting the global economy is a notable achievement, particularly considering Klook operates within a sector heavily affected by the virus. The company, which primarily serves Asia-based customers seeking to reserve experiences in international locations, experienced substantial order cancellations during the initial months of travel limitations. Klook swiftly adapted by shifting its focus to staycations and offering software-as-a-service solutions for local activity providers, encompassing ticketing, distribution, inventory control, and marketing support. This resulted in a subsequent recovery in bookings.

“Options exist for entertainment at home, as well as opportunities for local experiences when travel is possible,” explained co-founder and chief operating officer Eric Gnock Fah in a TechCrunch interview last July. “The current situation [the pandemic] is providing us with the chance to incorporate a new dimension to our offerings.”

The timing of this new funding is particularly advantageous. Klook had achieved profitability in several markets by last July, but was still actively pursuing expansion, as reported to TechCrunch. Established in 2014, Klook surpassed a $1 billion valuation in 2018, but has not disclosed its current post-money valuation, which is likely to have increased since attaining unicorn status. The company does not currently have any intentions of becoming a publicly traded entity, according to a spokesperson for TechCrunch.

Klook reported a rise in expenditure on domestic activities in Singapore, Hong Kong, and Taiwan, where COVID-19 restrictions have been progressively lifted, with booking volumes approaching pre-pandemic levels. During the peak of the pandemic, Klook added 150% more activities to its platform compared to the same timeframe in 2019.

Currently, Klook’s SaaS software facilitates millions of bookings for over 2,500 merchants globally. The funds from this new investment will be used to further develop and implement its merchant SaaS solutions.

“This additional capital reinforces our leading market position, enabling us to transition from a defensive posture to an offensive one, as domestic tourism becomes widespread and international travel gradually resumes,” stated Ethan Lin, co-founder and chief executive of Klook.