Traveloka Announces New Funding Of 3,6 Trillion Rupiah

Today (28/7) Traveloka announced the acquisition of new funding worth US$250 million or equivalent to 3,6 trillion Rupiah. Although it is not stated in detail who will participate, EV Growth is one of the previous investors confirmed to be involved in this round. The investment focus is to strengthen the company's balance sheet while strengthening several product lines in the midst of the Covid-19 pandemic.

This achievement is in line with the news reported by several media since early July 2020. Previously rumored A number of investors, including Siam Commercial Bank, FWD Group, GIC, and East Ventures, are said to be involved in the final stages of negotiations for Traveloka's continued funding. Latest rumors from source Reuters said the Qatar Investment Authority (QIA) is leading this round of funding.

To get the injection of funds, Traveloka's valuation is estimated to drop to $2,75 billion (almost 40 trillion Rupiah). Action down round This was taken because the company's business was hit by Covid-19 and experienced a decline in service traction.

"This is a major crisis in the current generation, both from a financial and humanitarian perspective. This situation is a form of readjustment that is forcing business people to rethink their plans, strategies and business models. The travel industry is also experiencing unprecedented difficult times. before, including Traveloka. The management team has made various difficult but necessary efforts, including restructuring and optimization, to minimize the financial risks that arise. We are confident that Traveloka will come back stronger after going through this crisis, "said Willson Cuaca, Managing Partner of EV Growth who joined in this funding round.

Admit difficulties in the midst of Covid-19

Covid-19 has made the OTA business experience a strange challenge. Many public transportation operations are frozen, various destinations are closed; obviously made the transaction mired. For Traveloka and many other players, this is the worst condition in their history.

Traveloka partners in the transportation, accommodation, activities, and restaurant sectors are also experiencing severe obstacles. For transportation, consumer demand dropped dramatically while demand for refunds jumped significantly; the hotel experienced the lowest occupancy rate ever; activity partners lifestyle both domestic and regional and restaurant partners have to temporarily close their business operations.

"It is undeniable that Traveloka has been greatly affected by the Covid-19 pandemic. Our business is at an unprecedented low since we were first established. However, we have always believed that Traveloka will bounce back with rapid business strategy adjustments, working together with industry partners and other stakeholders, and continue to present innovative products for users which is our main focus," said Traveloka Co-founder and CEO, Ferry Unardi.

Crawl stabilize business

In order to stay afloat, Traveloka implements the steps needed to optimize business in order to make savings and refocus on preparing strategies to welcome the new normal era. In Indonesia and Vietnam, for example, Traveloka sees that the domestic sector, travel or short-range entertainment activities have started to stretch and bounce back, along with high public awareness of the pandemic and lifestyle adjustments to the current situation.

Various initiatives were launched to meet changing consumer needs, such as the Covid-19 Test service combined with airline tickets, booking hotel vouchers with flexible stay periods through the "Buy Now Stay Later" program. Online Xperience featuring host famous, the Traveloka LIVEstyle Flash Sale live stream program, as well as the Traveloka Clean campaign that allows users to place orders through Traveloka more calmly and safely.

"I'm pleased to say that from a business perspective, we are seeing a gradual recovery across all of our key markets. Traveloka's business in Vietnam has started to stabilize and is approaching the pre-Covid-19 period, while our business in Thailand is now nearly over 50% compared to the normal situation. Although Indonesia and Malaysia are still in the early stages of recovery, these two markets continue to show promising momentum with progress from week to week, especially for the accommodation business line with the emergence of a trend of short-haul vacations or short distance vacations. staycation," added Ferry.