Bloomberg News reports that Traveloka was found to secure as much as $300 million in a new round of funding from investors, including BlackRock Inc. This comes as the largest online travel startup in Southeast Asia is counting on a post-Covid recovery with the intent of expansion in the area.
In a statement on Thursday, the company based in Jakarta said that it successfully struck a deal for funding from investors, including Allianz Global Investors and the Indonesian Investment Authority.
The funding round is considerably bigger than the earlier discussed target, which was $200 million, reported by Bloomberg News in June. Traveloka, backed by investors that include Expedia Group Inc and GIC Pte, has been considering an IPO or initial public offering in Indonesia or United States, as per an individual who is familiar with the issue and requested anonymity.
The tourism industry in Southeast Asia faced a crunch during the pandemic when the travel sector screeched to a halt. Traveloka was venturing into financial services when the pandemic was on when it partnered with banks like PT Bank Negara and PT Bank Rakyat Indonesia.
Many nations are now doing away with the restrictions related to the pandemic and throwing their borders open for travel and tourism. For instance, Thailand, where tourists from across the globe account for 12% of the gross domestic product, witnessed a rush of travelers from foreign nations in the recent months after it did away with the restrictions in July.
Bloomberg News reports that regional startups are raising funds even though there are worries related to an economic meltdown globally. These measures are being taken with the hope that such efforts will help regain their stand economically.
Traveloka has been helping clients with bookings related to a wide array of services, including hotel accommodation, airline tickets, tourism, and spa. It is also into food delivery, funding, insurance, and payment products. It has also been observed that the app has been downloaded more than 100 million times, as stated on its website.
However, the deal valuation is not clear. Traveloka has a value found to be at $3 billion, as per CB Insights, but reports from Bloomberg news state that in 2020 it was seeking funds at a considerably lower valuation.
