Vietnamese online travel startup Vntrip adds US$7m in series B round

Vietnam-based online travel agency Vntrip has raised an additional US$7 million in its series B extended funding, CEO and co-founder Le Dac Lam told Tech in Asia.

This round, which was led by an undisclosed industry investor alongside several existing backers, comes amid tough times for the travel industry as the world faces the Covid-19 pandemic.

International tourism in Vietnam dropped by 99% in September 2020 compared with the same period last year, according to estimates by Vietnam National Administration of Tourism. As early as February, state media reported that Covid-19 could wipe out up to US$7.7 billion in tourism revenues for the country.

Tourists traveling in boats in Ninh Binh province / Photo credit: 123rf

Founded in 2014, Vntrip specializes in domestic travel, which has seen a significant rebound as a result of Vietnam’s effective handling of the pandemic. The country has recorded no community infections in the past 50 days.

“The Covid-19 crisis has allowed us to focus on our strengths and optimize our operations in a way that will position the company for sustainable growth with a clear profitability target,” Lam said.

He added that Vntrip has a strong focus on the business-to-business segment, enabling companies and employees to “make all travel arrangements through our app without the hassle of paperwork and approval steps.”

With this round, Vntrip has reportedly raised a total of US$20 million in disclosed funding to date. Investors that participated in previous rounds include John Wu, former chief technology officer of Alibaba Group, Hong Kong-based Hendale Capital, Swiss investment firm IHAG Holding, among others. Vntrip last reported a valuation of US$45 million.

“The pandemic forced [Vntrip’s] management team to overhaul [its] business model and innovate in ways which have resulted in more durable and higher margin business lines,” said Scott Hancock, managing director of Deep Sky Capital, one of Vntrip’s existing investors.

Vntrip reportedly received several acquisition offers before the pandemic, but Lam said the startup is aiming to hit profitability in 2021 and has plans for an initial public offering.

In 2018, the company acquired Atadi.vn, a local site that allows users to search and book for cheap airfares.

Indonesian travel unicorn Traveloka also said recently that its transaction numbers in Vietnam and Thailand have reached nearly 100% of its pre-Covid-19 levels.