Skift Travel News Blog

Expensya, the corporate expense management startup, has been acquired. 

The Tunisia-based company said Tuesday that the deal is now complete with buyer Medius, the New York-based provider of accounts payable automation software. 

Terms were not disclosed. 

Medius’s software primarily deals with invoices, processing, and payments. The Expensya software automates the processing of employee expenses. 

Medius said it completed the acquisition to give its clients a more complete set of services, and the deal also expands the buyer’s clients base into new regions.

Medius said it has more than 4,000 customers in 102 countries. Expensya has more than 6,000 clients in 100 countries, with a workforce of 200 employees. 

“Expensya’s AI capabilities, employee spend management solution, and payment cards, with Medius’s AP automation platform, means we can now cover the whole indirect spend of companies and can apply the power of AI to help finance teams to optimize cost and processes across the board,” said Karim Jouini, CEO of Expensya, in a statement. 

Expensya had raised a total of $25.6 million over four funding rounds, according to Crunchbase. The most recent raises were a $20 million series B round in 2021 and $4.5 million in 2018.

The story of Culture Trip is sordid, and in the scheme of things, an inconsequential blip on the face of heavily funded travel startups.

What was at some point was an SEO-fueled destination content factory that had raised a lot of money and failed to create enough revenues, it tried to pivot into being an online travel agency and failed at that, the company somehow pivoted into being a small-group tour company — a reseller of tours from the likes of Intrepid Travel and others — in the last year and no one noticed.

Now, after raising as much as $175 million in equity and debt (see the details from its UK Companies House filing, the screenshot posted above) over the 12 years of its existence, it announced Tuesday that the company did a management buyout led by CEO Ana Jakimovska recently and has also put up the company for sale, or investment. Clearly the majority investor PPF Group lost its shirt in this deal, that’s for sure.

“At the beginning of 2022, Culture Trip launched an exciting new strategy, selling unique curated trips to digital savvy millennials using their digital content to acquire customers. The business has undergone rapid growth since this pivot, achieving an impressive 30% quarter-on-quarter growth and 78% year-on-year growth,” the company touted in the release Tuesday.

OK, lets unpack that: According to the financial filings, it made a whopping $1.9 million in revenues in 2021 with losses of $23.5 million for the year. And if we take the company figures at face value, that its revenues increased by 78 percent in the last year, even being generous its revenues for 2022 were around $3 million (see screenshot below), even if, as the company claimed, its losses have narrowed.

The company, which according to our estimates has gotten rid of most of its employees during 2022 (it had about 130 or so in 2021), is now trying to sell itself. It also announced Tuesday that it has hired advisory firm Lazarus Consulting to start a sale process or get an investment.

With little to no brand value, any residual SEO value quickly deteriorating and little revenues to boast of, and likely being unprofitable as a business, it is hard to see any good outcomes from here.

Roch Ventures, a €150 million ($160.2 million) fund for travel tech startups in Europe and Israel, has made its first investment. 

The Luxembourg-based fund made an investment in WeSki, a startup booking engine focused on the ski and snowboard industry. Roch Ventures is leading the round with participation from Waze founder Uri Levine, TravelPerk CEO Avi Meir, and the founders of FlixBus. The size of the investment was not disclosed. 

This is the first of what will likely be another five investments from the fund this year, said Bobby Demri, managing partner of Roch Ventures. The firm plans to invest the fund into 20 companies, focusing on seed and Series A rounds. It’s focused on the European and Israeli markets, which Demri said is filling a gap for the travel tech industry there. 

“In Europe, people are very afraid about travel investment. You will find some investing in travel, but you will never find a firm specializing in travel,” Demri said.”

Roch was founded last year by Demri and Ludger Kuebel-Sorger of Boston Consulting Group, along with executives from Six Senses, Ennismore Brand, and Air France.

The firm is focusing on what Demri believes is the next revolution in the travel and tourism sector. 

He sees opportunities around digital nomad services, sustainability, the blending of corporate and leisure travel, and tech that could remove intermediaries like global distribution systems. 

As for WeSki, he believes the opportunity lies in what he sees as a rise of niche travel services. 

“I think that the travel sector is becoming a more specialized industry,” Demri said.

Tel Aviv-based WeSki partners with 60 ski resorts in seven countries in Europe. Next, it plans to enter the U.S. market, including mom-and-pop facilities that may not have had much online presence previously. 

The platform allows users to book all facets of a ski trip, including flights, transportation, accommodations, ski lift passes, ski gear rental, and more, all according to budget, party size, and level of experience. 

WeSki said it had a 300 percent increase in revenue between 2021 and 2022 and revenue growth of 1,000 percent compared to pre-pandemic levels.

Expedia Group has announced the first group of tech companies taking part in its new Open World Accelerator program.

The 12 startups were chosen from hundreds of applicants worldwide focused on building tech products meant to improve accessibility for underserved travelers. Each startup or small business must have been founded in the last 10 years and have a minimum viable product. 

The startup participants get technology and business development support, mentorship from Expedia Group personnel and outside experts, a non-equity grant, and access to the Expedia Group platform and products. 

The accelerator was announced in September. 

“Open World Accelerator is specifically designed to drive innovation in the industry, remove barriers to travel, and enable startups and SMBs to build capabilities on Expedia’s Open World™ technology platform that significantly improve the experience for every traveler,” Archana Arunkumar, Expedia Group’s senior vice president of platform, said in a statement at that time. 

Each of the startups are listed with a description on the Expedia website. 

Some of them include: 

• Becoming Rentable, a short-term rental platform focused on accessible properties
• Greether, a platform dedicated to women that connects travelers with tour guides
• Misterb&b, a short-term rental platform dedicated to the LGBTQ+ community

Actor (and travel tech investor) Ashton Kutcher is at it again, as his Sound Ventures venture capital firm has co-led a $15 million investment in climate tech company Chooose.

It’s the latest in a long chapter of travel investing for Kutcher, revealed on Friday, with previous deals including Affirm, Airbnb, Hipmunk and Citymaps, which was bought by TripAdvisor .

Norway-based Chooose, which offers climate solutions such as carbon offsetting, carbon removals and sustainable aviation fuel, already works with global companies and airlines including British Airways, Air Canada and Japan Airlines. It also works with Booking.com, Trip.com and SAP Concur.

Startups like this have fast emerged out of the need to give companies better insight into their carbon footprints when flying. This extra capital will go towards scaling up its platform, and further “embed climate action solutions into customer experiences.” It also plans to expand into new geographies, thanks to the funding provided by Soundwaves, which is the sustainability-focused vehicle of Kutcher’s fund.

GenZero, a decarbonisation-focused investment company owned by Singapore’s Temasek, also co-led the investment round. Existing investors Shell Ventures and Vinyl Capital also participated in the strategic capital round. Other current investors include travel technology giant Amadeus and Contrarian VC.

UPDATE: This article was amended to remove the series B mention, which had originally been provided.

Six months after raising $30 million, a startup offering operations management software to small hotels has made its first acquisition. 

Barcelona-based Amenitiz said this week that it has acquired Ododo, a French company that offers online hotel training. 

The Amenitiz platform contains several features, including data transfer to online resellers, online booking, automation of daily tasks like payments and invoicing, and online marketing. 

The Ododo training service focuses on helping hoteliers learn how to increase bookings and become more profitable. 

Amenitiz clients will now be able to access the Ododo training for free, the company said. Especially during a tight labor market, Amenitiz said that providing the training tool is the next step in further supporting independent hoteliers

Marc-Antoine de la Rüe du Can, the founder of Ododo, will join Amenitiz as head of content. 

Following the acquisition, Amenitiz is launching The Hotel Club, a multilingual training platform through which any hotelier can access free training courses.  

In addition, Amenitiz plans to host in-person events regularly throughout Europe, with the goal of helping hoteliers expand their networks.

Amenitizp completed a Series A round of fundraising in April. The startup is part of a wave of companies offering cloud-based software to help small hotel companies sell online. Some others include Cloudbeds, Hotelrunner, Clock, Yanolja’s Ezee, SiteMinder, and Oracle Hospitality’s Opera Cloud.

Amenitiz said there are 700,000 hotels, bed and breakfasts, and vacation rentals in Europe, 80 percent of which fall under the company’s target clientele of independent properties with 50 rooms or fewer. 

A startup whose founding team includes two former Uber staffers has secured $5 million to grow its vacation and short-term rental platform in Mexico.

Naya Homes began operations in Puerto Vallarta in August, and with the extra cash will launch in Mexico City, with a 15-unit building in Polanco in September.

It specializes in vacation and short-term rental management, and it works with both real estate investors and homeowners.

The company claims that relative to Latin America incumbents that execute master leases on larger buildings, Naya Homes is an asset-light operator that maximizes profitability for all types of properties, from individual apartments to vacation villas.

Despegar, meanwhile, is bolstering its vacation rentals portfolio in Latin America, following the closing of a 51 percent stake in channel manager Stays. Lodging startup Casai, which is based in Mexico City, is also steeping up its presence.

The funding round was led by Boston and New York City-based Flybridge Capital Partners with participation from Primary Venture Partners, Clocktower Technology Ventures, K50 Ventures, Carao Ventures, Trip Ventures, Colibri Equity Ventures, Derive Ventures, in addition to several former executives from Uber’s Latin America team.

“We believe Naya can deliver incredible value to numerous stakeholders across the residential real estate value chain at scale,” said Jeff Bussgang, partner at Flybridge Capital Partners, in a statement. “Naya’s founding team is incredibly well-positioned, having on-the-ground experience managing operationally intensive businesses in LATAM, ranging from Uber to Sonder.”

The funding follows a $600,000 pre-seed led by Primary Venture Partners in March 2022.

Expedia Group announced the launch of a startup accelerator to empower innovation on its business to business platform.

Selected startups — and small businesses, as well — would get technology and business development support, mentorship from Expedia Group personnel as well as outside experts, a non-equity grant, and access to the Expedia Group platform and products.

Companies can apply to the Open World Accelerator program by October 21 here. To qualify they must be striving to make the travel industry “more open and accessible,” be less than a decade old, and already have at least a minimum viable product.

Archana Arunkumar, Senior Vice President of Platform. “Expedia Group’s mission is to power travel for everyone, everywhere,” said Archana Arunkumar, Expedia Group’s senior vice president of platform in a statement. “Open World Accelerator is specifically designed to drive innovation in the industry, remove barriers to travel, and enable startups and SMBs to build capabilities on Expedia’s Open World™ technology platform that significantly improve the experience for every traveler.”

HotelOnline, which is based in Kenya and has more than 6,000 hotel clients for its software, has acquired HotelPlus, a provider of hotel software to 2,200 clients in East Africa, the companies said on Monday.

The companies didn’t disclose the terms of the deal, other than to say that the transaction was mainly done in HotelOnline shares in a transaction that placed a $24 million valuation on HotelOnline.

HotelOnline is backed by Yanolja, the South Korea-based travel startup valued recently at more than $1 billion. HotelPlus was a fully bootstrapped company, meaning that it never took outside venture capital. Its co-founder and CEO Eric Muliro has become HotelOnline’s chief technology officer.

“Through this merger, we are significantly increasing our client base, while capitalizing on the combined strengths of both companies, creating a force to reckon with in the hospitality industry in the East Africa region,” said Håvar Bauck, one of the Norwegian co-founders of HotelOnline.

HotelPlus offers on-premise software, which will be brought into the cloud. The digital services of the combined companies help hotels with a broad range of back-office tasks, such as accepting a wide variety of online payments and setting room rates in reaction to changes in supply and demand.

HotelPlus has clients in more than a dozen countries across the continent, which will help speed the growth of HotelOnline, which Bauck co-founded with Endre Opdal in 2014.

Former Kayak Europe leader and now travel investor Jan Valentin has joined Seatfrog‘s board of directors, as the rail startup looks to move on from the pandemic by tapping into the trend for more sustainable travel.

The app, which lets train travelers upgrade their ticket at a reduced rate on the original cost by bidding, was named a Skift Top Travel Startup to Watch in 2019. Then the pandemic hit, and it lost 97 percent of its revenue.

Now the company wants to put coronavirus behind it with the appointment of Valentin, who used to be Kayak’s managing director and senior vice president in Europe. Valentin also runs ennea capital partners, which in 2020 merged with Howzat Partners to create a new $100 million fund to invest in travel startups and other digital businesses.

Howzat also invested in Seatfrog’s $1.2 million seed round, but Skift understands no extra investment accompanied Valentin’s appointment to the board.

Valentin is also a backer of Comtravo, the German corporate travel agency that was recently bought by TripActions.

Seatfrog said in a statement Valentin joins at a perfect time to support the company’s mission to reimagine the rail experience in a category that has been “trundling along without meaningful innovation for decades.”

“Governments are spending $400 billion plus in Europe to drive modal shift to more sustainable train travel, but it remains a massively under-digitized category, and the customer experience is a mess,” he said.

Seatfrog said it had recorded 1,400 percent growth so far this year, and is expanding internationally.

“We’ve delighted millions of passengers, and driven large revenue uplifts for rail companies well beyond the capabilities of the category’s legacy systems,” added Iain Griffin, CEO and co-founder of Seatfrog.