Flying Taxis and Loyalty Tech: 6 Travel Startups Raise $100 Million

It's been a slow start to the year for travel startup funding. That pace likely won’t last, however. There were multiple record-breaking funding rounds in 2024 as travel software companies aim to consolidate the industry through M&A. Stakeholders expect that activity to continue through 2025. 

So far this year, six travel startups have raised just over $100 million.

Oyo: $65 Million

Oyo, the budget hotel operator and aggregator, raised $65 million. 

The capital came from Redsprig Innovation Partners, a fund led by Oyo CEO Ritesh Agarwal, increasing the company’s valuation to $3.79 billion ahead of a planned IPO.

The company in August raised a series G round of $172.7 million at a valuation of $2.4 billion, a sharp drop from its series F round of $1.5 billion in 2019.

India-based Oyo has raised an estimated $3.3 billion over the years. Much of that has gone toward rapidly expanding different sectors of the business and building operations software products that it provides to hotel owners. 

The company last month acquired G6 Hospitality, which owns more than 1,500 Motel 6 locations in the U.S. and Canada, for $525 million.

Agarwal said at the Skift India Summit in March that the company had been profitable in the prior couple of quarters and had been generating cash flow. 

The company last year reported its first-ever profit. 

Reeco: $15 Million

Reeco, a procurement platform for the hotel industry, has raised $15 million in series A funding. 

Aleph VC led the round, with participation from Net Capital Ventures and Joule Ventures.

The Florida-based company has now raised a total of $25 million, including its $10 million seed round in 2023.

The Reeco platform is meant to help hotels manage real-time food costs, automate inventory audits, and streamline vendor purchasing. Clients include Vision Hospitality, OTH Hotels Resorts, and Scarlett Hotel Group.

The funding will go toward strengthening the platform, customer acquisition, and hiring for the sales and marketing teams. 

Sarla Aviation: $10 Million

Sarla Aviation, which is developing a flying taxi for urban use, has raised $10 million in series A1 funding.

Accel and investor Nikhil Kamath led the round, with support from a group of angel investors. 

India-based Sarla Aviation is developing an eVTOL (electric vertical take-off and landing) aircraft meant to help travelers bypass traffic congestion in the country’s busy cities. The aircraft is designed to carry up to 1,500 pounds. 

The funding will go toward developing the tech, hiring, and establishing a center for research and development.

The company unveiled its first prototype on Friday, with plans for market launch by 2028.  

Metafuels: $9 Million

Metafuels, which is developing a type of renewable jet fuel, has raised $9 million in a round of oversubscribed funding. 

Celsius Industries led the round, with support from RockCreek, Fortescue Ventures, and Verve Ventures, Energy Impact Partners, and Contrarian Ventures

Switzerland-based Metafuels converts synthetic methanol into jet fuel that it says existing aircrafts can use instead of traditional fuel. 

The funding will go toward demonstrating the production process and developing the company’s first industrial-scale projects.

The company said it is in early conversations with a potential buyers’ alliance of airlines, fuel suppliers, airports, and corporate travellers.

The company has a production facility in Denmark, which it says will produce 12,000 liters of fuel daily. 

Arcube: $1.5 Million

Arcube, upsell software for airlines, has raised $1.5 million (£1.2 million) in seed funding. 

Fuel Ventures and Oxford Capital Partners led the round, with support from individual investors. 

England-based Arcube says it analyzes customer data to determine how likely a passenger is to return to an airline post-flight. The airline can then allow passengers to exchange points or miles for certain ancillary products — like priority seating or lounge access — for future flights, meant to entice the passengers to return.

Etihad Airways piloted the software, which reportedly led to $1.6 million in additional revenue from 1,300 passengers in one year. The startup is now in conversations with more than a dozen other airlines.

Conservio: $1 Million

Conservio, a short-term rental booking platform with listings in southern African countries, has raised $1 million. 

E4E Africa led the round, with support from Volve Capital, Living Hope Ventures, and angel investors. 

South Africa-based Conservio lists properties focused on natural surroundings outside of city centers, with more than 500 listings that feature sustainable cabins, farm stays, safaris, and more.

The funding will go toward expanding to 2,000 suppliers. 

Company	Stage	Lead	Raise
Oyo	Unspecified	Redsprig Innovation Partners	$65 million
Reeco	Series A	Aleph VC	$15 million
Sarla Aviation	Series A1	Accel	$10 million
Metafuels	Unspecified	Celsius Industries	$9 million
Arcube	Seed	Fuel Ventures	$1.5 million
Conservio	Unspecified	E4E Africa	$1 million