In brief: Traveloka in talks to raise $400m, says report

Traveloka, Southeast Asia’s largest online travel startup, is in talks to raise about US$400 million from new and existing investors to accelerate its expansion, according to people familiar with the matter.

The money will be used to push beyond traditional airline tickets and hotel bookings into activities for travelers like concerts or amusement parks, said the people.

Source: Bloomberg

Traveloka’s valuation could double to US$4.1 billion as a result of the fundraising. Singapore sovereign wealth fund GIC is set to lead the round, according to The Information.

The travel activities booking space is heating up as established online travel sites seek their next area of growth. A pioneer in this area is Klook, now a market leader that’s worth over a billion dollars. Giants like Airbnb and TripAdvisor have also launched their own travel activities offerings.

Klook founder Eric Gnock Fah, however, thinks that it won’t be easy for general online travel services to venture into activities booking. While flights and accommodations are uniform products, activities are diverse. Activity organizers in each category have different needs, and as such a booking management system needs to be customized for each group.