“Flight Path to Success: Six Innovative Travel Startups Secure $100 Million in Funding”

The beginning of the year has been sluggish for funding in travel startups. Nevertheless, this trend is unlikely to persist. Numerous record-setting financing rounds occurred in 2024 as travel software firms strive to merge the industry via mergers and acquisitions (M&A). Investors anticipate that this momentum will carry on into 2025.

Up until now this year, six travel startups have amassed over $100 million.

Oyo: $65 Million

Oyo, a budget hotel chain and aggregator, secured $65 million.

The investment originated from Redsprig Innovation Partners, a fund spearheaded by Oyo CEO Ritesh Agarwal, elevating the firm’s valuation to $3.79 billion in advance of its anticipated IPO.

In August, the company acquired $172.7 million through a series G round, valuing the company at $2.4 billion, a significant decline from its series F valuation of $1.5 billion in 2019.

Headquartered in India, Oyo has amassed around $3.3 billion over the years. A considerable portion of this funding has been directed towards rapidly broadening various aspects of the business and developing software solutions offered to hotel operators.

Last month, the company purchased G6 Hospitality, which operates over 1,500 Motel 6 locations in the United States and Canada, for $525 million.

Agarwal mentioned during the Skift India Summit in March that the firm had achieved profitability in the preceding quarters and was generating cash flow.

Last year, Oyo reported its initial profit.

Reeco: $15 Million

Reeco, a procurement platform tailored for the hotel sector, has raised $15 million in its series A funding.

Aleph VC led this funding round, with contributions from Net Capital Ventures and Joule Ventures.

Based in Florida, the company has accumulated a total of $25 million, which includes a $10 million seed round raised in 2023.

The Reeco platform is designed to assist hotels in managing live food costs, automating inventory inspections, and optimizing vendor purchases. Notable clients include Vision Hospitality, OTH Hotels Resorts, and Scarlett Hotel Group.

The funds will be utilized to enhance the platform, acquire customers, and recruit for the sales and marketing teams.

Sarla Aviation: $10 Million

Sarla Aviation, which is developing an urban flying taxi solution, has secured $10 million in series A1 funding.

Accel and investor Nikhil Kamath led this funding round, along with a consortium of angel investors.

Based in India, Sarla Aviation is working on an eVTOL (electric vertical takeoff and landing) aircraft designed to help passengers circumvent traffic jams in the nation’s bustling urban centers. This aircraft is engineered to carry payloads of up to 1,500 pounds.

The financial support will be allocated towards technology development, hiring, and setting up a research and development center.

The company revealed its inaugural prototype last Friday, with market launch ambitions set for 2028.

Metafuels, focused on producing a type of renewable aviation fuel, has obtained $9 million in an oversubscribed funding round.

Celsius Industries spearheaded this round, with backing from RockCreek, Fortescue Ventures, Verve Ventures, Energy Impact Partners, and Contrarian Ventures.

Based in Switzerland, Metafuels converts synthetic methanol into jet fuel that is compatible with existing aircraft, intended as a substitute for traditional aviation fuel.

The funding will be used to demonstrate the production process and to advance the company’s inaugural projects on an industrial scale.

The firm reported that it is in preliminary discussions with a prospective buyers’ consortium consisting of airlines, fuel suppliers, airports, and corporate travelers.

The company operates a production facility in Denmark, which is expected to generate 12,000 liters of fuel each day.

Arcube: $1.5 Million

Arcube, upsell software designed for airlines, has secured $1.5 million (£1.2 million) in seed funding.

Fuel Ventures and Oxford Capital Partners led the funding round, with contributions from various individual investors.

Established in England, Arcube claims to analyze customer data to assess the likelihood of a passenger returning to a particular airline post-flight. Airlines can then offer passengers the ability to exchange loyalty points or miles for certain ancillary products—such as priority seating or lounge access—for future journeys, aimed at enticing them to return.

Etihad Airways conducted a pilot of the software, reportedly generating an additional $1.6 million in revenue from 1,300 passengers within a single year. The startup is currently engaged in discussions with over a dozen other airlines.

Conservio: $1 Million

Conservio, a platform for short-term rental bookings with listings across southern Africa, has raised $1 million.

E4E Africa led this round, with additional support from Volve Capital, Living Hope Ventures, and angel investors.

Based in South Africa, Conservio features properties emphasizing natural surroundings located outside urban hubs, boasting over 500 listings that encompass sustainable cabins, farm stays, safaris, and more.

The raised funds will facilitate expansion to encompass 2,000 suppliers.