Klook, a prominent online travel agency specializing in tours, activities, transport, and travel services, has announced a successful fundraising effort, amassing $210 million in capital. This funding, a combination of venture equity and bank financing, underscores Klook’s commitment to its growth and expansion plans.

Leading Investors and Equity Stakeholders

Bessemer Venture Partners led the equity portion of the investment, with the exact amount remaining undisclosed. Additionally, several other notable entities, including BPEA EQT, Atinum Investment, Golden Vision Capital, and various corporate investment arms, secured equity stakes. Complementing this equity funding, Klook also utilized bank facilities to bolster its financial position.

Klook’s Impressive Funding Journey

Established in 2014 and headquartered in Hong Kong, Klook has raised an impressive total of over $900 million in financing since its inception. This substantial funding positions Klook as a major player in the travel experiences sector, rivaling Berlin-based GetYourGuide as one of the most heavily funded startups in this category.

Notable Absences and Future Plans

Remarkably, Softbank, a previous supporter of Klook, did not participate in this funding round. It is worth noting that GetYourGuide, a key competitor, has also received substantial investments from Softbank. Furthermore, Klook is actively considering the possibility of going public, with potential listings in the United States or Hong Kong, as disclosed by one of its co-founders in an interview with Bloomberg.

Achieving Financial Milestones

Klook has achieved a significant financial milestone by becoming cash flow positive earlier this year, marking its first instance of achieving this status. The company also boasts an annualized gross booking value of $3 billion, reflecting its robust performance. Notably, Klook’s customer base has expanded substantially, with twice as many new customers in the current year compared to 2019, indicating a growing level of brand recognition.

Evolving Business Model and Market Relevance

Klook has transitioned its revenue model away from traditional same-day tour products, such as guided walking tours. In recent years, the company has diversified its offerings, including the sale of selected Japanese high-speed train tickets and services like portable Wi-Fi. This strategic shift aligns Klook more closely with the preferences of customers in the Asia Pacific market and distinguishes it from competitors like GetYourGuide and Tripadvisor’s Viator, which primarily focus on classic tours, activities, and attractions.

Mobile-Centric Approach

Klook stands out by prioritizing a mobile-first approach, with approximately 80% of its bookings originating from smartphones. This emphasis on mobile accessibility aligns with evolving consumer behavior and contributes to Klook’s competitive edge.

Investment Allocation

The newly secured funds will be allocated to several key areas, including product innovation, the expansion of social and digital marketing efforts, and the integration of artificial intelligence (AI) technologies. Klook has entered into a partnership with Google Cloud to leverage generative AI capabilities, including automated translations, content generation, and the implementation of a customer service chatbot.

Klook’s latest funding round positions the company for continued growth and innovation as it maintains its prominent position in the online travel agency industry.

TL;DR

• Klook raises $210 million in funding, a mix of venture equity and bank financing.
• Leading investors include Bessemer Venture Partners, BPEA EQT, Atinum Investment, Golden Vision Capital, and others.
• Klook, founded in 2014, has now secured over $900 million in funding.
• Softbank, a previous supporter, did not participate in this round.
• Klook considers potential public listings in the US or Hong Kong.
• Achieved cash flow positivity and an annualized gross booking value of $3 billion.
• Shifted revenue focus to diverse offerings beyond traditional tours.
• Emphasizes mobile-first approach with 80% of bookings through smartphones.
• Fresh funds to be used for product innovation, digital marketing, and AI integration.