How Klook became a billion-dollar activities booking giant

Photo credit: Klook

Things weren’t always looking up for Klook. The Hong Kong-based startup didn’t get much traction in its first three months. Many users visited its website, but didn’t make bookings, recounts co-founder and COO Eric Gnock Fah.

A near-death moment came two years later. While Klook was raising its series B round, discussions with venture capitalists fell through.

“A lot of doors were closed to us because we were investment bankers. A lot of investors didn’t like people from banking because we don’t come with an industry background; we’ve never built anything,” he says.

The market for startup fundraising was bleak, and at least one investor committed but couldn’t call the funds. As offers evaporated one by one, Klook’s coffers were running dry.

“Two hundred employees were relying on us,” recounts Gnock Fah. “It was a lot of pressure.”

Fortunately, Klook’s angel investor extended a lifeline by investing in them again. In the end, the company raised US$30 million from top venture capital firm Sequoia Capital and others.

The eureka moment

Today, Klook is the toast of the Hong Kong startup scene, and it claims to be the market leader in its niche. After a fresh US$200 million fundraise, the company – which lets tourists book activities at their destination of choice – is now valued at more than US$1 billion.

While the company did not reveal specific financial data, it is on track to gross US$1 billion in bookings in 2018. Klook takes a cut of each transaction.

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