TravelPerk’s Major Growth: A $2.7 Billion Valuation
TravelPerk, a leading corporate travel platform, has raised a fresh round of $200 million, bringing its total valuation to an impressive $2.7 billion. This marks a significant milestone for the Barcelona-based company, especially as it continues to expand beyond travel services into the world of fintech.
With SoftBank, Atomico, and EQT among the investors in this funding round, TravelPerk is now well-positioned to accelerate its growth, particularly in the U.S. market and financial services. In a move to boost its fintech capabilities, the company has also acquired Yokoy, a Swiss spend management platform. This acquisition marks TravelPerk’s entry into the expenses and financial services market, creating a more unified platform for businesses.
A Quick Rebound: From Pandemic Struggles to Growth
For TravelPerk, this major funding round is a triumph following a tough period during the COVID-19 pandemic, which saw corporate travel come to a near-standstill. Like many companies in the travel sector, TravelPerk faced plummeting revenues in 2020 and 2021, as business trips were halted worldwide. However, as travel restrictions eased, TravelPerk quickly rebounded, seeing its revenue grow to five times its pre-pandemic levels.
Jean-Christophe Taunay-Bucalo, President and COO of TravelPerk, explained that the pandemic forced the company to build a solid foundation and become more resourceful. He believes the company’s ability to weather the storm during the pandemic is a major reason why it’s thriving now.
Why Investors Are Still Betting Big on TravelPerk
The corporate travel sector is huge. According to Atomico, the global value of corporate travel reached $1.5 trillion last year, up 6% from pre-pandemic levels. As a market that’s poised for sustained growth, it’s no wonder that investors are excited about TravelPerk’s potential.
Hillary Ball, a partner at Atomico, said that corporate travel is a “mammoth area of spend” for businesses. As companies return to travel, the demand for efficient, cost-effective travel management solutions like TravelPerk has skyrocketed.
TravelPerk is tapping into this growing market, providing a platform that helps businesses manage travel bookings, expenses, and financial data all in one place. By addressing a complex problem in the corporate world, TravelPerk is positioning itself as a one-stop-shop for corporate travel and spend management.
Expanding into Fintech: The Acquisition of Yokoy
One of the most exciting moves for TravelPerk is its acquisition of Yokoy, a Swiss spend management platform. Yokoy’s technology helps businesses manage expenses and track spending, which will now integrate into TravelPerk’s platform.
This strategic acquisition expands TravelPerk’s offerings, enabling it to become a unified platform that not only handles business travel but also expenses and financial management. This positions TravelPerk as more than just a travel solution—it’s now a fintech player.
The acquisition also brings on board Yokoy’s investors, including Sequoia Capital, which will now be part of TravelPerk’s investor group alongside General Catalyst, Kinnevik, and SoftBank’s Vision Fund.
Plans for U.S. Expansion and Investment in Technology
With the fresh capital raised, TravelPerk plans to expand in the U.S. market and continue investing in technology. The company has already made moves to strengthen its position in the U.S. by acquiring AmTrav, a Chicago-based corporate travel booking software firm.
In addition to expanding its market presence, TravelPerk is also focused on developing new artificial intelligence (AI) tools to enhance its platform. The goal is to make travel management even more efficient by leveraging AI to automate tasks and improve the user experience.
TravelPerk has also made significant strides in its AI technology since raising $104 million in funding last year. The company is committed to continuing its investment in AI, which could play a crucial role in automating travel and expense management, improving decision-making, and streamlining operations for businesses.
The Corporate Travel Market: A Huge Opportunity
According to Carolina Brochado, partner at EQT, the total addressable market for corporate travel in the U.S. and Europe is estimated to be around $200 billion, with half of that market currently unmanaged. This represents a huge opportunity for TravelPerk to capture market share by offering an integrated, seamless solution for businesses that often use multiple platforms for their travel needs.
Brochado also highlighted how many businesses still rely on fragmented travel solutions like Booking.com and Expedia for booking flights and hotels, leaving a gap for companies like TravelPerk to fill with a more cohesive, centralized platform.
As businesses increasingly seek better control over their travel and expenses, TravelPerk is in an ideal position to capitalize on this trend by providing a comprehensive solution.
Looking Ahead: No Rush for an IPO
Despite reaching a $2.7 billion valuation and achieving significant growth, TravelPerk has no immediate plans to go public. Taunay-Bucalo emphasized that the company’s long-term goal is to continue growing and focusing on customer satisfaction rather than rushing into an IPO.
“We want to be here for 100 years,” he said, reflecting the company’s long-term vision. Unlike many tech startups that chase quick exits, TravelPerk is committed to a sustainable growth strategy that will position it for success in the years to come.
AI and Travel: Not Concerned About “Agentic” AI
With AI technology playing an increasingly important role in corporate travel, TravelPerk is also exploring new ways to integrate AI into its platform. The company is not worried about emerging technologies like “agentic” AI, which can automate tasks like making travel reservations.
Taunay-Bucalo stated that AI agents could become a valuable tool, but the company is taking a pragmatic approach to test new technologies. “We’re going to test it. If it works, we keep it. If it doesn’t, we kill it,” he said, demonstrating a willingness to experiment with new technologies without rushing into unproven innovations.
Conclusion: A Bright Future for TravelPerk
With its new funding round, acquisition of Yokoy, and plans for growth in the U.S. and fintech, TravelPerk is well-positioned to continue its upward trajectory in the corporate travel sector. The company has proven its resilience and ability to adapt, emerging from the pandemic stronger than ever.
As the corporate travel market grows and businesses look for more integrated, efficient solutions, TravelPerk’s comprehensive platform could play a central role in shaping the future of business travel and expenses management.
With a $2.7 billion valuation, a clear long-term vision, and a focus on innovation, TravelPerk is poised to become a dominant player in the world of corporate travel and beyond.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.