Traveloka Reportedly Finalizing New Funding, Valuation Drops to $2,75 Billion

Traveloka is reportedly getting new funding again. According to the source quoted Bloomberg, the company is in late-stage negotiations with a number of investors, including Siam Commercial Bank and FWD Group -- as well as past investors, such as GIC and East Ventures.

Although the agreement is subject to change, the funds to be secured are in the range of $250 million (3,6 trillion Rupiah). Bigger that's rumored Deal Street Asia, which is $100 million (around 1,4 trillion Rupiah).

To get the 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.

Last year, multiple sources of reports estimates Traveloka's valuation to reach $4,5 billion (almost 65 trillion Rupiah). Last year they also targeted to get new funds at $500 million (7,2 trillion Rupiah).

All businesses in the OTA landscape are experiencing major disruptions due to the pandemic. Apart from Traveloka, Expedia (one of Traveloka's investors), in Q1 2020 experienced a decrease in total orders of up to 39%. Traveloka affiliate company in the budget hotel sector, Airy, even closing the business because they are no longer able to bear business operations.

Traveloka itself has been doing it a lot layoffs to its employees, although it is not announced exactly how many employees are affected.

Apart from Traveloka, a number of Indonesian unicorn startups continue to seek new funding. Gojek is completing its Series F funding, while Tokopedia is reportedly in talks of continuing investment with Temasek and Google.

Traveloka was founded in 2012 by Ferry Unardi, Albert Zhang, and Derianto Kusuma. The last one, already "Exit" since November 2018 and relinquished his position as CTO. Traveloka services are already available in several countries in Southeast Asia and Australia.

Business adaptation

The only hope for investors is the return of the travel business after the pandemic. in fact new normal Indeed, efforts are being made in many regions, but concerns about the presence of a new wave of Covid-19 have made many people discourage their intention to travel – in addition to various destinations that have not opened themselves up due to restrictions.

The company itself is not standing still. They try to fix it. With the assets owned, Traveloka launched the option activity online via Xperience. They are also trying to optimize fintech services through several products, including managed Paylater own financial company.