This year has gotten off to a slow start for travel startups raising money. But that pace likely won’t continue. There were multiple record funding rounds in 2024 as travel software companies look to consolidate the industry through M&A. Officials expect this activity to continue through 2025.
Six travel startups have raised more than $100 million so far this year.
Oyo: $65 million
Budget hotel operator and aggregator Oyo has raised $65 million.
The funding comes from Redsprig Innovation Partners, a fund led by Oyo CEO Ritesh Agarwal, and boosts the company’s valuation to $3.79 billion ahead of its planned IPO.
In August, the company raised a $172.7 million Series G round at a valuation of $2.4 billion, a significant decrease from its $1.5 billion Series F round in 2019.
India-based Oyo has raised an estimated $3.3 billion to date. Much of that work was devoted to rapidly expanding various areas of the business and building operational software products for hotel owners.
Last month, the company acquired G6 Hospitality, which owns six motels with more than 1,500 locations in the U.S. and Canada, for $525 million.
Agarwal said at the Skift India Summit in March that the company has been profitable and generating cash flow for the past few quarters.
The company reported its first-ever profit last year.
Rico: $15 million
Reeco, a procurement platform for the hotel industry, has raised $15 million in Series A funding.
Aleph VC led the round, with participation from Net Capital Ventures and Joule Ventures.
The Florida-based company has now raised a total of $25 million, including a $10 million seed round in 2023.
The Reeco platform aims to help hotels manage food costs in real-time, automate inventory audits, and streamline vendor purchasing. Clients include Vision Hospitality, OTH Hotels Resorts and Scarlet Hotel Group.
The funds will be used to strengthen the platform, acquire customers, and hire a sales and marketing team.
Sala Aviation: $10 million
Sala Aviation, which is developing urban flying taxis, has raised $10 million in Series A1 funding.
Accel and investor Nikhil Kamath led the round with support from a group of angel investors.
India-based Sara Aviation is developing eVTOL (electric vertical take-off and landing) aircraft aimed at helping travelers avoid traffic jams in the country’s downtown areas. The aircraft is designed to carry up to 1,500 pounds.
The funds will be used for technology development, employment and the establishment of a research and development center.
The company unveiled its first prototype on Friday and plans to bring it to market by 2028.
Metafuels, a company developing a type of renewable jet fuel, has raised $9 million in an oversubscribed funding round.
Celsius Industries led the round, with support from RockCreek, Fortescue Ventures, Verve Ventures, Energy Impact Partners, and Contrarian Ventures.
Switzerland-based Metafuels converts synthetic methanol into jet fuel that existing aircraft can use to replace conventional fuel.
The funding will be used to demonstrate the production process and develop the company’s first industrial-scale project.
The company said it is in early discussions with a coalition of potential buyers comprised of airlines, fuel suppliers, airports and corporate travellers.
The company has a production facility in Denmark and plans to produce 12,000 liters of fuel every day.
ARCUBE: $1.5 million
Arcube, an upselling software for airlines, has raised $1.5m (£1.2m) in seed funding.
Fuel Ventures and Oxford Capital Partners led the round with support from private investors.
UK-based Arcube said it analyzes customer data to determine how likely a passenger is to return to an airline after a flight. Airlines aim to encourage repeat passengers by allowing passengers to redeem points and miles for ancillary products such as preferred seats on future flights or lounge access.
Etihad Airways piloted the software and reportedly generated $1.6 million in additional revenue from 1,300 passengers in one year. The startup is currently in talks with more than a dozen other airlines.
Conservio: $1 million
Conservio, a short-term rental booking platform that lists properties in Southern African countries, has raised $1 million.
E4E Africa led the round, with support from Volve Capital, Living Hope Ventures, and angel investors.
South Africa-based Conservio lists accommodations outside of city centers with a focus on natural environments, with over 500 properties featuring sustainable cabins, farm stays, safaris and more. is published.
The funding will be used to expand the number of suppliers to 2,000 companies.
CompanyStageLeadRaiseOyoNot specifiedRedsprig Innovation Partners$65 millionReecoSeries AAleph VC$15 millionSarla AviationSeries A1Accel$10 millionMetafuelsNot specifiedCelsius Industries$9 millionArcubeSeedFuel Ventures$1.5 millionConservioNot specifiedE4E Africa$1 million
