Last week saw the second-largest amount of funding for travel startups this year, with a total of $331 million raised, making it the third biggest funding week of the year. The largest amount raised was by the expense-management platform Ramp, which has now raised $450 million over the past eight months.
Ramp, a platform that helps companies manage expenses including travel, raised $150 million in a series D-2 funding round, giving it a valuation of $7.65 billion. The New York City-based company had previously raised $300 million in August 2023 at a valuation of $5.8 billion. The latest round was led by Khosla Ventures and Founders Fund, with support from investors like Sequoia Capital and Greylock. Ramp now offers a platform for travel expenses, providing companies with corporate cards, tech integrations with travel agencies, and more than 150 new features introduced in 2023.
Skyports, a company developing airports for flying taxis, raised $110 million in series C funding. The round was led by ACS Group, with participation from Groupe ADP. Based in London, Skyports designs and plans to operate vertiports for the future industry of vertical take-off and landing aircraft. The company has previously signed a deal with Dubai’s Roads and Transport Authority and Joby Aviation to operate a vertiport in Dubai by 2026, in conjunction with the development of electric-powered aircraft by Joby. Skyports and Groupe ADP operate a site near Paris for testing flying taxis and other operations.
Profitroom, a booking engine for hotels, raised $71.3 million from MCI Capital for a 65% stake in the company. The Poland-based company enables hotels to integrate booking capabilities on their websites, share availability with third-party booking sites, and automate marketing. Profitroom plans to expand into Western Europe, Africa, Latin America, the Middle East, and Asia. The company’s management team remains unchanged following the investment.
The funding rounds for Ramp, Skyports, and Profitroom represent different stages of financing for startups. Seed capital is typically used to start a business with funds from angel investors or friends and family. Series A financing is drawn from venture capitalists to confirm customer interest. Series B financing helps companies grow faster through recruiting and marketing. Series C financing aims to expand companies through acquisitions, with hedge funds and private equity firms involved. Series D and beyond help mature businesses prepare for going public or being acquired.
Overall, last week’s funding for travel startups demonstrates continued support for innovative companies in the industry. With significant investment in platforms like Ramp, Skyports’ vertiport development, and Profitroom’s hotel booking software, the travel sector is poised for growth and disruption in the years to come. The variety of funding stages and investors involved in these rounds reflects the diverse opportunities for startups in the travel industry to develop and scale their businesses.
