Traveloka, Southeast Asia’s biggest online travel startup, is close to raising fresh funds at a private-market valuation of about USD 2.75 billion -- roughly 17% less than its most recent fundraising, according to people familiar with the matter.
The Jakarta-based firm is in advanced negotiations with new strategic investors such as Siam Commercial Bank Pcl and Richard Li’s FWD Group Ltd., as well as existing backers GIC Pte. and East Ventures to secure about USD 250 million, the people said, asking not to be named because the discussions are private. The primary fundraising will be at a USD 2.75 billion valuation, while a secondary sale will be at USD 2.4 billion, one of the people said. Traveloka counts online travel site Expedia Group Inc. and JD.com Inc. among its existing backers.
Terms of the fundraising could still change, they said. A Traveloka representative declined to comment.
With a population of 570 million and growing middle class, Southeast Asia’s six largest economies are expected to see their online travel market more than double from USD 34 billion in 2019 to USD 78 billion in 2025, according to the most recent report by Google, Temasek and Bain released in October.
E-Commerce is the fastest growing sector in Southeast Asia's USD 100 billion web economy.
The Indonesian unicorn says that getting tested before moving locations and being mindful of hygiene are the most important things that one can do if they must travel during COVID-19.
Identifying this pattern, the company launched a new feature within its current app where users can book and schedule rapid COVID-19 tests. The idea is that receiving easy access to COVID-19 tests will become extremely crucial in the future for travel companies.
Traveloka Chief Executive Officer Ferry Unardi said in an interview at the New Economy Forum in Beijing in November that the company is considering an initial public offering in Indonesia and in the U.S. in two to three years.
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