Travel startup Traveloka secures $300 million in funding

The biggest online travel startup in Southeast Asia counts on a post-Covid rebound to expand in the region, and has secured $300 million in new funding from investors including BlackRock Inc.

The Jakarta-based company said in a statement Thursday that it had struck a deal for financing with investors including Allianz Global Investors and the Indonesia Investment Authority.

The funding round's size is larger than the $200 million target that was previously reported in June by Bloomberg News. According to a person familiar with the matter, Traveloka, backed by investors such as GIC Pte and Expedia Group Inc., is considering an initial public offering in the US or Indonesia.

President Caesar Indra said in an interview with Bloomberg Television s Haslinda Amin, David Ingles and Rishaad Salamat that the fresh funds strengthen Traveloka's balance sheet and allow it to invest in its core business.

Southeast Asia's tourism industry plunged into crisis during the Pandemic when lockdowns all but brought travel to a halt. Traveloka partnered with banks like PT Bank Negara Indonesia and PT Bank Rakyat Indonesia during the Pandemic. Representatives for the startup didn't want to say anything.

Southeast Asian online travel agents OTAs may earn from the speedy rebound in domestic and international travel in the region, as well as high smartphone ownership and low penetration of brick-and- mortar travel agencies, as a result of the rapid rebound in domestic and international travel in the region. We expect Traveloka to grow faster than rivals such as Tripadvisor and Booking Holdings, with our scenario projecting sales to expand by more than 40% from 2021 -- 25 compared to the industry's 36%. Traveloka appears to be able to weather industry challenges, the most crucial of which is achieving profitability amid IPO plans, together with Indonesia s Tiket.com.

Many countries are removing pandemic-era restrictions and reopening borders. Thailand, where international tourism contributes about 12% to gross domestic product, has seen a rush of foreign tourists in recent months, after scrapping restrictions in July.

Indra said that Traveloka expects a full recovery from the pandemic by the year 2024. He said that domestic travel will drive the recovery, followed by international recovery.

Regional startups are raising funds despite worries about a global economic downturn, in order to position themselves for an eventual rebound. Traveloka helps consumers book a wide range of services including airline tickets and hotels as well as spas and tourism attractions. It also offers food delivery and financing, payment and insurance products. Its app has been downloaded more than 100 million times, according to its website.

The valuation of the deal is not known. Americans are moving to cheaper places where home prices won't go up as Home Prices Surge.