Zeelo is helping corporate clients make shuttle routes more efficient, and Teleport is making the visa submission process a little less tedious.
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.
Four travel tech startups have announced raises of more than $16 million this week.
>>Zeelo, a platform that optimizes shuttle routes, has raised $14 million in an oversubscribed series A extension round. It was led by FlatzHoffmann, with support from IREON Ventures, an undisclosed family fund in Boston, and angel investors.
The startup said it has now raised $34 million, including $12 million raised in 2021.
The London-based startup said its software platform can help client companies determine the most efficient routes for buses. Clients include companies that have employee shuttles as well as school bus companies.
The funding will go toward hiring, releasing new tech products, and expanding business in the U.S. The company opened a second headquarters in Boston as it works to expand.
Zeelo said it has already secured contracts with Fidelity as well as two “leading multi-site corporate enterprise clients, including the world’s leading e-commerce marketplace and a global shipping and logistics business.”
Sam Ryan, co-founder and CEO of Zeelo, said in a statement: “Developed markets are underserved for daily mass transportation needs, and we have seen increased demand for our transit-tech solution in the United States over the past 12 months. Due to this demand, we’ve had a growing number of requests from shuttle operators to leverage our technology to improve their client relationships and streamline operations. This new capital will accelerate Zeelo’s expansion across the US for an accelerated rollout of large scale, multi-site transportation contracts, with some of North America’s biggest household brands, as well as further investment in our software offering.”
>>Teleport, a startup platform for travel visa services, has raised $500,000 in pre-seed funding.
Investors included Kunal Shah, Vidit Aatrey, Kishore Ganji, Appreciate Capital, Superb Capital, 888vc, and Faad Network.
The India-based startup said its platform can streamline tedious visa processing tasks.
More than 100 travel agents and travel companies use the platform, the startup said. It has a target to process 1 million visas within this year.
The funding will go toward strengthening the technology, hiring, and expanding users.
“For many Indians, the excitement of traveling abroad often gets overshadowed by tedious visa formalities. It’s clear that amidst these bureaucratic challenges, there lies a significant opportunity to craft a service grounded in trust and understanding for Indian travelers,” said Abhishek Agarwal, partner at Appreciate Capital, in a statement.
It was led by ZAKA VC, with support from Gateway Ventures, KFLT Angels, Seedblink, and individual investor Jean-Pascal Duvieusart.
The startup said it has more than 20,000 users per month with a growth rate of 10-15% each month. It has plans to grow two to three times each year and be available across Europe in the next two years. The startup plans to launch in North America and Asia by 2025.
>>Betterspace, a hotel tech startup, has raised an undisclosed “seven-figure investment” from Round2 Capital.
The Germany-based startup provides several tech products to hotels, including digital guest communication and a device that automatically regulates radiator temperatures to save on energy costs.
Betterspace plans to further develop its radiator management product and expand into other industries, such as education, health care, and government.
The company has more than 1,700 customers in more than 10 countries.
|Zeelo||Series A||FlatzHoffmann||$14 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.
Correction: The headline was updated to show that Zeelo raised $14 million.
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Photo credit: Zeelo's software is meant to help corporations save money on transportation costs. Pixabay / Pixabay