All the startups that raised money want to help their clients, whether they're airlines, hotels, or suppliers, do away with manual tasks and automate.
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.
Two startups involved in the travel industry raised nearly $15 million this week.
>>Fetcherr, a platform that uses artificial intelligence to help airlines optimize pricing, has raised $12.5 million in pre-series B funding. It was led by Left Lane Capital and M-Fund.
The Israel-based startup said its platform can help any type of airline streamline the traditionally manual process of tracking competitor fares and adjusting prices in response. The product can track and adjust pricing automatically, and is meant to maximize revenues, the company said. It leverages air travel data from partnerships with ATPCO and Infare.
“Fetcherr’s AI-based approach to pricing optimization and revenue management represents a critical disruption to the aging software that exists today, and we are excited by Fetcherr’s potential to uplift performance for partners across air, hotel, cargo and beyond,” said Harley Miller, CEO and managing partner at Left Lane Capital.
The company said its software can be integrated with existing infrastructure in weeks.
The startup partnered with Brazil-based Azul Airlines last fall to pilot the tech.
Fetcherr said its airline partners have reported higher operating revenues since deploying the pricing technology.
The new funding will go toward onboarding additional airline partners, open a North American headquarters, and further expand into other global markets.
>>MRM Global, which provides marketing technology to the global drinks and hospitality sector, has raised a £2 million ($2.3 million) follow-on investment from BGF.
The Edinburgh-based company’s technology helps drinks manufacturers and wholesalers steamline the marketing process and increase the level of marketing support they provide to independent hospitality and retail customers, MRM said.
Since BGF’s original £2.6 million investment in August 2020, MRM said it has doubled its revenue and doubled headcount to 74, as well as expanded into new markets. The company now works with beer, wine, and spirits suppliers and distributors in more than 34 countries.
The funding will primarily be used toward the delivery of a “major multi-year contract recently won with one of North America’s largest wine and spirits distributors,” the investor said.
>>Atica, a marketing tech startup for the hotel industry, has raised an undisclosed amount of seed funding. It was led by Titan Capital, with participation from multiple industry professionals and hotel owners.
The California-based company’s technology is meant to help hotels automate digital and local marketing. The tech works by scanning the internet for local businesses and their contacts, then automating email campaigns introducing the hotel and its services to those people, according to the company’s website. Atica sales managers then work to secure the business.
Atica said it has helped clients in the U.S. grow annual revenue by up to 40 percent. Attica’s portfolio of brands includes Crowne Plaza, Wyndham Garden, Fairfield, Hyatt Place, Embassy Suites properties, and more.
The funding will go toward strengthening the tech, hiring, and expanding business, the company said.
|Fetcherr||Pre-series B||Left Lane Capital and M-Fund||$12.5 million|
|MRM Global||Unspecified||BGF||$2.3 million|
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.
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Photo credit: Azul Airlines is a customer of Fetcherr. Luis Souza / Flickr