Traveltech firm Onda eyes $15m raise as it restarts SEA, MENA expansion plans

Photo credit: Onda

Traveltech startup Onda built a market-leading presence in its home country of South Korea through partnerships with the likes of Kakao, Naver, and Airbnb. In 2019, the company – which offers an enterprise solution that helps hotels manage operational processes like room distribution – began the first steps of a Southeast Asian expansion by entering Thailand.

Then, the Covid-19 pandemic began. In lieu of those plans, the company decided to expand its services within South Korea but catering to larger hotels and resorts.

“We developed Dive, a property management system for large chain hotels, and built global partnerships, including with Google Hotels, preparing to turn the crisis into an opportunity,” said founder and CEO Hyun-seok Oh in an interview with Tech in Asia.

However, with travel set to return to pre-pandemic levels, the company has rekindled its plans to scale internationally. Last April, Onda doubled down on Thailand with an investment in local player Hoteliers.Guru and followed that with an expansion into Taiwan.

Now, the company is looking to raise US$15 million in series C funds, said Oh.

Growing through the pandemic

Founded in 2016, Onda initially targeted small and medium-sized accommodations, such as vacation rentals and B&Bs. Its tech helps hotels resolve issues related to room sales and operations.

When its expansion efforts were put on hold because of the pandemic, Onda instead transitioned to become a full-fledged hospitality tech company, offering a suite of SaaS solutions to its clients.

According to Oh, the company saw growing domestic demand for its digital transformation services, with Covid-19 restrictions forcing hospitality businesses to maintain room sales and operations with minimal staff. With Onda’s greater focus on its local operations, the company logged a 4x growth in its gross merchandise value – from US$56 million in 2020 to US$230 million in 2023.

“Previously, most large chain hotels in Korea relied on hotel operational solutions from American companies,” Oh said. Among its clients are several hotels owned by Ananti, a Korean luxury hotel chain.

By December 2022, Onda began reviving its international market expansion efforts as it raised US$10 million in a series B funding round. That fueled its Hotels.Guru investment and Taiwan launch, where it initially partnered with 10 major hotel brands including the K Hotels Group, which operates nine hotels in Taiwan.

Since then, the company – which has raised US$21.2 million in disclosed funding – handles distribution for over 700,000 properties through more than 50 online sales channels. It also services over 4,500 properties worldwide with its SaaS offerings.

Onda CEO Hyunseok Oh / Photo credit: Onda