In a funding round led by Expedia Inc., Traveloka Holding Ltd. has raised a total of $400 million. Between this round and the last round of funding, the company has raised $500 million. The former round was funded by East Ventures, JD.com, Sequoia Capital, and Hillhouse Capital Group.
This deal gives Traveloka a value of nearly $2 billion, according to an anonymous executive who is familiar with the development and affiliated with the company. Traveloka is Indonesia’s largest online travel company. However, the county is experiencing growing competition in the industry.
Expedia is an American online travel agency that offers users the ability to book hotel reservations, car rentals, airline tickets, vacation packages, cruises, and more over the Internet or by telephone. Their main businesses consist of Expedia.com, Egencia.com, and Hotwire.com. Expedia also offers travel services in Asia and Europe, as well as corporate travel options.
East Ventures is an early stage fund that focuses on startups in Jakarta, Tokyo, and Singapore. Recent investments courtesy of East Ventures include funding to Julo, Airfrov, EV Hive, Circle-in, and 99.co. This venture fund typically works in the sectors of apps, games, e-commerce, and marketplaces.
Hillhouse Capital Group acts as a long-term equities investor. It provides funding to innovative teams and individuals through the entire range of stages, from new startups to established companies. Hillhouse has offering funding to Vets First Choice, Mobike, Yitu Technology, Sea Limited, and NIO in recent months.
JD.com is the largest online direct sales company in China. It sells consumer electronics, computers, and communication devices. JD.com consistently invests in companies that are innovative and relevant. Recent investments include funding going to Kingdee, Weiyang, Farfetch, YinLong Group, and Yixin Capital.
Sequoia Capital is a venture capital fund that traditionally focuses on companies in the energy, enterprise, financial, Internet, healthcare, and mobile sectors. The company has been around since 1972 when it was founded in Menlo Park, California. Other recent investments include reddit, 1mg, Vets First Choice, ONE Championship, Clara Labs, StackRox, Mira Labs, and Increff.
“The partnership gives Traveloka travelers access to a diverse set of international accommodations and we are looking forward to working with Expedia to expand our services in Asia and beyond,” says Traveloka co-founder and CEO Ferry Unardi.
On the other side of the deal, Expedia is interested in utilizing Traveloka’s knowledge in order to push their presence in Southeast Asia. Traveloka has over 100 domestic and international airlines that act as partners, while also serving people in Indonesia, Vietnam, Thailand, Malaysia, the Philippines, and Singapore. They also provide various accommodations and payment options. Traveloka states their mobile app has been downloaded more than 20 million times.
The new funds will be used to enhance focus on research and development projects with artificial intelligence and machine learning capabilities. The company will also be focusing on learning more about customer behavior in order to leverage data to provide a better online travel experience.