Traveloka secures $300m in financing to fuel growth

Indonesia: Jakarta-based online travel agency and app Traveloka has announced that it has secured $300 Millions in fresh funds.

As well as the Indonesian Investment Authority [INA] – The newly established sovereign wealth fund of Indonesia, BlackRock, Allianz Global Investors, Orion Capital Asia and other global financial institutions also invested in the online travel agency.

The round of funding was reported to have attracted “significant” interest from a number of long-term investors, resulting in an oversubscribed deal.

The investment, which brings Traveloka’s total funding to date to US$1.2 billion, will contribute to Traveloka’s sustainable growth across Asia and the digital travel ecosystem.

Ridha Wirakusumah, CEO of INA, said: “The pandemic has accelerated digital transformation. Changing customer behavior combined with innovative technological services means that digitization will contribute to economic recovery.

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“Powering the travel industry with their unprecedented convenience and access, online travel agencies have continued to transform the industry landscape during the Covid-19 pandemic. For example, the share of OTAs in Indonesia’s gross tourism bookings has increased from 24 percent before the pandemic to 33 percent in 2021, with an expected increase to 36 percent by 2024.

“We are excited about Traveloka’s funding round in partnership with BlackRock, Allianz Global Investors and Orion, among other leading global financial institutions, as it aligns with INA’s mission to create long-term prosperity for Indonesia by laying the foundation for sustainable digitalization Ecosystem, including digital infrastructure, digital services and digital platforms – which will make a major contribution to economic recovery and growth.

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“We believe that Traveloka is Indonesia’s national and regional champion and is also an important catalyst for the digitization of travel and accommodation in Indonesia and the region. We believe this joint investment can enable Traveloka to deepen its leadership and create value for the entire travel ecosystem,” added Wirakusumah.

Ferry Unardi, Co-Founder and CEO of Traveloka, said: “We are extremely excited to add INA, BlackRock, Allianz Global Investors, Orion and others to our existing group of dedicated investors who believe in our vision of fulfilling travel and lifestyle -Requests of our users. As our business continues to accelerate as the industry recovers from the pandemic, this financing provides us with an opportunity to continue to strengthen our balance sheet and continue to focus on our core business while building for the future.”

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Founded in 2012, Traveloka raised $250 million in July 2020 to improve its operations during the coronavirus crisis and restore confidence in the “resilience and viability of the regional travel industry.” At the time, the company said it would use the funding to “build a more robust and integrated travel and lifestyle portfolio in key markets, as well as expand its financial services solutions to better support ecosystem partners.”

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