Hotaliors secures more cash to develop new products and carry out a rebrand, while insurance platform Faye wants to make claim processes even easier with fresh funding.
Travel Startup Funding This Week
Each week we round up travel startups that have recently received or announced funding. Please email Travel Tech Reporter Justin Dawes at [email protected] if you have funding news.
This week, five travel startups collectively announced more than $114 million in funding
>> Hotailors, a corporate booking tool, has secured $24.17 million in new funding.
The corporate round was provided by existing investor DC24 ASI.
The capital will be used to launch new insurance and financial products, expand in the U.S., Middle East and North Africa, and also help fund a rebranding from Hotailors to WorkTrips.com.
The Poznan, Poland-based company counts Google, Vodafone and Microsoft as customers.
>> Cabify, a ride-hailing app, has received a loan of $41.85 million to buy 1,400 electric vehicles.
The investment was approved by the European Investment Bank.
Spain’s Cabify will also invest in digital infrastructure, while the funding will improve the supply of emission-free urban mobility in the cities where the startup operates. Overall Cabify aims for a zero-emission fleet by 2025.
>> Bookaway Group, a company comprising four online travel agencies used by travelers to book ground transport services, has raised $35 million.
The Series C round was led by Red Dot Capital Partners with investment from Menorah and Tenere Capital. Existing investors Aleph, Corner Ventures and Entree Capital also participated. Red Dot’s Managing Partner Barak Salomon will join Bookaway Group’s board.
Bookaway Group wants to digitize booking ground transport, including ferry, bus and coach travel. It also wants to provide new financial models and operational tools that support operators in recovering from the pandemic more quickly, and improve day-to-day fleet management and profitability.
Bookaway.com has made four acquisitions in the past 12 months, including 12Go, GetByBus and Plataforma 10. Bookaway Group CEO Noam Toister said the company expects to continue its acquisition strategy, to become “the only player able to offer complete ground transport inventory globally.”
>> Faye, a travel insurance startup, has raised $8 million in seed funding.
Viola Ventures and F2 Venture Capital led the round, with participation from Portage Ventures, Global Founders Capital and former NBA player Omri Casspi.
Faye’s protection can cover trips, health, belongings and even pets via an app that sends proactive alerts and provides access to customer experience specialists. It enables users to file claims digitally, and quickly pays for approved claims via electronic transfers to Faye Wallet.
Faye is currently available to residents in 40 states in the U.S., but plans to expand to more.
>> Katanox, a travel accommodation distribution and fintech platform, has raised $5.7 million.
The money was secured from various investors, including Rappi and Yuno co-founder Juan Pablo Ortega. Kannox has also appointed new Expedia executive Rob Torres as non-executive director.
The company plans to scale up its business-to-business distribution of accommodation.
|Red Dot Capital Partners
|Viola Ventures/F2 Venture Capital
Skift Cheat Sheet
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.
Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.
Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E, and, beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.
CORRECTION: This article was updated to correct misinformation provided by Hotailors about the investor.
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Photo credit: Hotailors, a corporate booking tool, has secured $24.17 million in new funding. Caleb Minear / Unsplash