TravelPerk Raises $200M, Valuation Doubles to $2.7B

TravelPerk Secures $200 Million Funding at $2.7 Billion Valuation

TravelPerk, a business travel management platform headquartered in Barcelona, has successfully raised $200 million in a new funding round. This investment results in a substantial valuation of $2.7 billion for the company.

This valuation nearly doubles the $1.4 billion achieved during its previous funding round just last year, demonstrating significant growth and investor confidence.

Strategic Acquisition of Yokoy

Concurrent with the funding announcement, TravelPerk revealed the acquisition of Yokoy, a Swiss startup. This acquisition is intended to integrate native expenses management capabilities directly into the TravelPerk platform.

Resurgence of the Travel Industry

The travel and tourism sector is experiencing a strong recovery, approaching pre-pandemic levels. This rebound is benefiting startups that offer a diverse range of services.

These services include tour packages, trip planning assistance, luggage storage solutions, and innovative vacation rental technologies.

Growth in Corporate Travel

The corporate travel segment is also witnessing a significant upswing. The World Travel & Tourism Council (WTTC) projects business travel spending to reach a record $1.5 trillion in 2024.

This represents a 6.2% increase compared to the peak recorded in 2019, before the onset of the pandemic. Investors are keenly observing this growing demand within the corporate travel startup landscape.

For example, Engine, a Denver-based company specializing in hotel, flight, car rental, and meeting space bookings, secured $140 million in funding at a $2.1 billion valuation in September.

TravelPerk’s All-in-One Platform

TravelPerk positions itself as a comprehensive platform for businesses. It facilitates the booking, management, and reporting of all travel arrangements, both domestically and internationally.

The platform’s functionality is further extended through integrations with other business systems, such as HR and expenses platforms.

Impact of Remote Work

Despite the rise of remote and hybrid work models, the demand for traditional corporate travel remains robust. TravelPerk’s recent Value of Business Travel Report supports this observation.

The report indicates that companies continue to prioritize travel investments to stimulate sales and foster new business opportunities, including participation in industry conferences.

“The shift to hybrid and remote work has had a limited effect on business travel needs,” explained Jean-Christophe Taunay-Bucalo, President and COO of TravelPerk, in an email to TechCrunch.

“Employees who require travel as an integral part of their roles will continue to do so, whether it’s for client meetings or on-site installations, such as wind turbine maintenance.”

Opportunities in Decentralized Travel

A more distributed workforce is driving increased investment in off-site meetings and events, which necessitate travel arrangements.

TravelPerk views this decentralization as an ideal opportunity to expand the reach of its technology.

“Empowering employees with decentralized travel systems allows them to manage their own bookings,” Taunay-Bucalo stated. “Our platform provides businesses with the necessary control and visibility over expenses and compliance, without overwhelming travel managers with logistical tasks.”

Travel and Expense Consolidation

Established in 2015, TravelPerk had secured approximately $660 million in funding through equity and debt. With an additional $200 million in capital, the company is now intensifying its strategies for global expansion.

This expansion includes a focused effort on the U.S. market, evidenced by the acquisition of Chicago-based AmTrav last year, supported by $135 million in debt financing.

However, growth initiatives also encompass branching into related business areas. TravelPerk currently integrates with Yokoy, an AI-powered spend management platform that has backing from Sequoia Capital.

As announced on Monday alongside its Series E funding, TravelPerk is now fully acquiring Yokoy for an undisclosed amount – sources indicate a transaction value in the “nine figure” range, aligning with Yokoy’s prior fundraising of around $107 million since its founding in 2019.

This acquisition will enable TravelPerk to provide a more comprehensive and integrated travel and expense solution. Expenses will be directly incorporated into the core platform, rather than solely relying on external integrations.

“We are more committed than ever to expanding in key markets, accelerating growth within the U.S., and striving to become the leading travel and expense management platform,” stated Avi Meir, co-founder and CEO of TravelPerk (pictured above).

This strategy echoes similar movements within the broader technology landscape. For instance, TripActions broadened its services to include expense management in 2020, responding to the widespread disruption of corporate travel caused by the pandemic.

Conversely, Ramp expanded in a different direction in 2022, integrating travel management capabilities into its existing expense product.

The move into expense management is strategically advantageous, safeguarding the company against potential challenges within the travel industry, both present and future. Expense management is a universal business need, irrespective of a company’s travel policies.

Following the acquisition, Yokoy’s team, including CEO Philippe Sahli and CTO Devis Lussi, will be joining TravelPerk to oversee the integration of their respective products.

“Our collaboration with Yokoy has already yielded positive results, and we are enthusiastic about furthering this success by welcoming Phil, Devis, and the entire Yokoy team to TravelPerk,” Meir commented. “We share a unified vision regarding the transformative potential of AI in travel and expense management, and the innovations emerging from Yokoy’s AI labs in Zurich are truly remarkable.”

TravelPerk’s Series E funding round was spearheaded by European venture capital firm Atomico, with contributions from EQT Growth, Noteus Partners, Kinnevik, General Catalyst, and other existing investors.