Omio travel booking app to use part of $ 100 million in new funds to make purchases
This investor support will help Omio accelerate its quest to become a global booking brand for what is known as multimodal travel booking.
Sean O’Neill, Skift
Travel booking app Omio said on Wednesday that he had raising of $ 100 million (€ 83.7 million) in convertible debt from existing and new investors, such as Temasek, Kinnevik, Goldman Sachs, NEA and Kleiner Perkins.
The Berlin-based company, which offers consumers multimodal search for flights, trains, buses, ferries, car rentals and other transportation, had previously raised $ 296 million in venture capital.
“We are very impressed with the speed and efficiency with which Omio has adapted to an unprecedented crisis for the global travel industry,” said Georgi Ganev, CEO of Kinnevik. “The management team delivered its products quickly and we can see the robustness of the business model, which is well diversified by market and mode of transportation. “
Omio said it plans to use some of the money to acquire other businesses. The company has a history of growth through acquisitions. Omio acquired its Australian rival Rome2Rio last October. Analysts expected him to target companies that could help him grow in the Americas and Southeast Asia.
Another target could be tech companies that could allow Omio to better sort booking options based on minimal carbon consumption. Many European consumers are expressing their interest in such options.
When it comes to rail, Omio has had to build trade deals and technical integrations from scratch since its inception in 2013 because unlike air transport, rail does not offer a comprehensive reservations database to connect to. , despite the attempts of the Expedia group. Silverail, Sqills, and Amadeus.
Omio said it now works with around 800 transport operators across Europe and the North American market, which it entered earlier this year. But the connection with rail systems is not always transparent. Omio said German Deutsche Bahn had not passed on information about the occupancy levels of its trains whose capacity was limited to ensure social distancing. This lack of information has confused train reservations on Omio’s app.
Like other travel resellers, Omio had to put most of its 350 employees on leave during the peak of the pandemic in Europe earlier this year. But he said he intends to bring back most of the full-time staff, as bookings have recovered faster than expected.
“We are already above 50% of our pre-Covid-19 bookings despite marginal marketing spend,” said Naren Shaam, founder and CEO, referring to his company’s largest markets in Germany and France. Before the crisis, the company said it attracted an average of 27 million users per month to its search platform. The company said some travelers booking a train have switched to using Omio as an app-based tool to bypass kiosks and ticket counters at stations.
Additional reporting by Dennis Schaal. Skift Pro subscribers can read Dennis’ analysis of this deal and other travel news online in his weekly briefing.