Spotnana Launches Travel Technology Platform with $41M Funding

Spotnana Secures $41 Million to Disrupt Business Travel

Spotnana officially launched on Thursday, having successfully raised $41 million in funding. This investment will fuel the company’s ambition to revolutionize the $1.4 trillion business travel sector with its innovative, open global platform.

Investment Details

The funding round comprises a $34 million Series A, spearheaded by ICONIQ and Madrona Venture Group, with contributions from Decibel and Mubadala Capital. This follows a previously undisclosed $7 million seed round secured in 2020 from ICONIQ, Madrona, 8VC, and Global Founders Capital.

Platform Overview

Established in 2019 by CEO Sarosh Waghmar and CTO Shikhar Agarwal, Spotnana is developing a software-as-a-service (SaaS) platform. This platform is designed for both travel buyers and suppliers.

Its core function is to automate complex back- and mid-office processes. Furthermore, it aggregates travel inventory from numerous global sources and integrates seamlessly with existing workplace technology solutions, simplifying travel management.

Addressing Industry Challenges

Waghmar, leveraging his experience founding and leading the digital travel firm WTMC, highlighted the inherent difficulties in scaling within the travel industry.

He observed that the sector is characterized by fragmentation and systemic inefficiencies. He determined that building a robust technology company was the key to overcoming these obstacles, initiating the development of Spotnana prior to the onset of the global pandemic.

Market Opportunity

Despite the challenges posed by the pandemic, Waghmar emphasized the substantial size and growth potential of the travel market.

“Corporate travel alone accounted for $700 billion in spending last year, and the overall travel industry is valued at $1.4 trillion,” he stated. “We anticipate a return to $1.4 trillion by 2024, driven by the resumption of in-person events.”

Platform Availability and Growth

Following a successful pilot program with over 50 corporate travel clients managing global travel operations, the platform is now publicly available.

The company has experienced significant growth, expanding its team to over 120 employees in the past year.

Industry Expertise on the Board

Steve Singh, the former founder and CEO of Concur, a leading corporate expense and travel software company, is an investor at Madrona Venture Group and serves as Spotnana’s board chairman.

Greg Stanger, an ICONIQ investor and former CFO of Expedia, also joins the board as part of this investment round.

A New Paradigm for Travel Technology

Singh likened Spotnana to “AWS for the travel industry,” emphasizing its potential to provide foundational infrastructure for innovation.

“Clients are utilizing Spotnana in diverse ways, either by directly using the complete product or by leveraging the API to create customized solutions,” he explained. “This offers a unified experience, comparable to accessing travel records through online booking, travel agents, or airport kiosks.”

Leveraging Past Success

Waghmar previously scaled a bootstrapped company to over $70 million in annual travel spend.

He believes that technology will be the primary driver of change in the travel industry and that strategic partnerships with investors possessing industry knowledge are crucial for accelerating progress.

Future Plans

The newly acquired funding will be allocated to expanding the engineering team, enhancing the travel operations infrastructure, and continuing the development of the platform’s open architecture.

“We believe this represents the largest funding round ever secured by a business travel startup,” Waghmar concluded. “Having demonstrated our ability to build a profitable business previously, we are confident in our capacity to disrupt this industry once again.”