Peak XV-backed eSIM firm Airalo bags $220m, hits $1b valuation

Singapore-based eSIM provider Airalo has raised US$220 million in its latest funding round, led by CVC through its Asia Fund VI.

The investment values the company at over US$1 billion, making it the first unicorn in the eSIM sector.

The funding includes US$185 million from CVC, with additional support from existing investors Peak XV and Antler Elevate.

Airalo plans to use the capital to expand its offerings, improve customer experiences, and enhance its platform for both individual travelers and corporate clients.

The company, founded in 2019, provides eSIM services in over 200 destinations and serves more than 20 million users worldwide.

CEO and co-founder Ahmet Bahadir Ozdemir said the funding will support further innovation and enhanced connectivity solutions.

Airalo aims to roll out new data packages and in-app features this summer, including dedicated data, text, and voice packages in selected markets.

🔗 Source: Airalo

🧠 Food for thought

1️⃣ eSIM’s decade-long journey from industrial niche to mainstream adoption

Airalo’s unicorn status marks a significant milestone in the evolution of eSIM technology, which was initially developed by the GSMA in 2012 primarily for industrial IoT applications 1.

The technology faced a slow path to consumer adoption, with the first eSIM-enabled consumer device being the Samsung Gear S2 Classic smartwatch in 2016, followed by Google’s Pixel 2 in 2017 2.

Apple’s introduction of eSIM support in the iPhone XR and XS in 2018 significantly accelerated market adoption, contributing to the 90% increase in eSIM-supporting smartphone models seen in 2023 3.

The market has grown from a niche solution to a $9.7 billion industry in 2023, with projections to reach $20.3 billion by 2032 at an 8.49% CAGR, demonstrating the technology’s transition from experimental to essential 4.

This growth trajectory contextualizes Airalo’s achievement, as the company captured significant market share during a critical inflection point when consumer awareness and device compatibility were simultaneously expanding.