Funnow Raises $15M Series B Funding - Instant Booking App

FunNow Secures $15 Million Series B Funding for Expansion

FunNow operates as a booking application designed for individuals seeking spontaneous experiences. Users can readily reserve services like manicures or restaurant seating and proceed directly to enjoy them. With increased consumer activity outside the home, FunNow is preparing for further international growth.

Investment Details

The Taipei-based company recently announced the successful completion of a $15 million Series B funding round.

Perfect Hexagon Commodity & Investment Bank and Ascendo Ventures co-led the investment. Participation also came from the corporate venture divisions of PChome, KKday, and Wistron.

Returning investors included CDIB Capital, Darwin Ventures, Accuvest, Sanpu Travel Group, and CSV Venture Fund, jointly managed by NEC Capital Solutions and Venture Labo Investment.

Strategic Growth Plans

According to co-founder and CEO TK Chen, FunNow initially intended to launch its Series B fundraising in 2020, prior to the onset of the COVID-19 pandemic. Despite the challenges posed by the pandemic across its markets – including Hong Kong, Japan, and Malaysia – the company observed a recovery in business starting in the second quarter of this year.

This Series B round brings FunNow’s total funding to approximately $22.5 million, encompassing its 2018 Series A. The funds will be allocated to broadening the range of categories available within the app, incorporating options like nightclubs, karaoke bars, and catering services. Expansion into new territories, such as Thailand and Singapore, is also planned.

Adapting to Pandemic Challenges

The pandemic presented unique obstacles in each of FunNow’s operating markets. For instance, Kuala Lumpur experienced a relatively low case count for much of the year until an outbreak began in May.

In Taiwan, FunNow’s primary market, conditions were largely normal until a surge in cases prompted a lockdown from May to August, resulting in a significant revenue decline. However, revenue has since rebounded to around 80% of pre-pandemic levels.

Innovative Service Adjustments

FunNow’s team proactively adapted the app’s services during the outbreaks. In Malaysia, they collaborated with food and beverage businesses and discovered a preference for takeaway orders over delivery. Consequently, they integrated takeaway booking functionality.

This strategy was subsequently implemented when Taiwan entered lockdown. “Within two months, our return for takeaway was almost the same as dine-in revenue,” stated co-founder and chief global strategist CC Chang.

Expanding Reservation Options

Leveraging existing multi-channel reservation tools, FunNow modified its hotel reservation offerings to include shorter-duration stays of four, six, or twelve hours. This catered to individuals seeking a space to dine or work outside of their homes.

Chen emphasized that the company continued to innovate and enhance the app, acquiring additional merchants in Taiwan, Malaysia, Hong Kong, and Japan, where they maintain local teams. The acquisition of Kuala Lumpur-based reservation app TABLEAPP a year ago further strengthened their Malaysian operations.

“We wanted to raise money now so we can expand market share as soon as possible, once the pandemic is under control,” Chen explained.

Shifting Consumer Behaviors

Chen noted that the pandemic has altered consumer habits. Online bookings have become more prevalent as walk-ins are discouraged, and consumers appreciate the convenience offered by FunNow compared to traditional phone calls. Increased demand for services like salon appointments has also been observed during periods of relative COVID-19 control.

Increased Competition

FunNow is encountering growing competition, particularly from startups that have shifted their focus from international travel to “staycations.” Both SoftBank-backed Klook and PickTime now provide local booking options that overlap with FunNow’s offerings.

Chen anticipates that competition will intensify.

Differentiation Through Daily Life Focus

FunNow distinguishes itself by concentrating on “daily life” activities – such as dining, haircuts, manicures, and massages – rather than packages centered around destinations like theme parks or tourist attractions.

“We are really focused on instant booking,” said Chang. “It’s important to our users because it’s more convenient. You don’t have to make a phone call and we have 10 different categories that are based on daily life, so if you are used to FunNow to do your hair, your nails, make salon appointments, order bouquets or cakes for parties, you won’t easily switch to other platforms.”

Strategic Partnerships

FunNow’s Series B funding included investment from the corporate venture arms of PChome, KKday, and Wistron. Chen believes these investments will facilitate collaboration with all three companies to “accelerate the growth of a lifestyle ecosystem.”

For example, PChome, a popular Taiwanese e-commerce platform, may feature FunNow activities during promotional campaigns. Users browsing for Mother’s Day gifts on PChome could be presented with FunNow restaurant booking options.

KKday, previously focused on international travel, is now prioritizing staycations. Chen stated that a partnership between the two companies aims to create a stronger competitor to Klook. “We can’t give a lot of details right now, but the basic idea is to combine resources. For example, they have a lot of activities and we have dinners and massages. If we come together, we can combine our suppliers and get more traffic and orders to merchants.”

FunNow intends to pursue similar partnerships to generate cost-effective traffic.

While Wistron’s role in FunNow’s ecosystem is less apparent, Chen explained that the company has been actively involved in digitizing Taiwan’s market and has established a corporate fund to invest in startups, providing substantial support to FunNow.

Ascendo Ventures managing director Aaron Shin stated, “FunNow’s performance during the COVID-19 pandemic shows that the company’s operating conditions are optimistic and have huge potential for overseas expansion.”