Myrealtrip is the most recent journey tech firm to piggyback on the rising post-pandemic tourism trade. The Seoul-based startup mentioned at the moment it has raised $56.7 million (KRW75.6 billion) in a Sequence F funding spherical to speed up its enterprise and product innovation and increase its hiring.
World tourism will return to pre-pandemic ranges by the third quarter of 2023, in response to a latest report from the UN World Tourism Group. Journey expertise firms are as soon as once more making ready to speed up their enterprise enlargement.
“The journey trade was fragmented in South Korea 12 years in the past and there was no platform that offered journey data,” Myrealtrip CEO Donggun Lee mentioned in an unique interview with TechCrunch. Now the 12-year-old firm, which has 7.9 million customers in South Korea, goals to be a brilliant app within the journey trade, providing journey reserving companies from flights, lodging, actions to native transportation.
The corporate partnered with roughly 2,000 journey companies, resort platforms and airfare comparability suppliers resembling Expedia, Agoda and Viator to allow vacationers to ebook excursions, actions, eating places, native transportation, inns and Airbnb-style lodging worldwide.
The valuation has elevated threefold because the final fairness financing, Sequence D, in 2020, Lee advised TechCrunch, with out giving an actual determine. In response to earlier media, the corporate valuation in 2020 was estimated at over KRW 200 billion.
Lee additionally mentioned that Myrealtrip has seen its income enhance 3 times since 2022. The corporate recorded a gross merchandise quantity (GMV) of $746 million (KRW 1 trillion) in 2023. The aim is to double its GMV and generate EBITDA of $12 million. this 12 months, Lee famous.
Like most journey firms, the Korean startup confronted challenges in the course of the pandemic lockdown. The corporate says it might survive on the capital it secured in 2020 and debt financing in 2022 to organize for the post-pandemic.
“Myrealtrip prioritized home tourism and launched new options resembling group tour or enterprise journey to outlive the previous two difficult years,” Lee mentioned.
The corporate not solely expanded its home tourism enterprise but in addition made a number of acquisitions and strategic investments. Myrealtrip acquired Startrip in 2022 to seize the variety of overseas vacationers visiting South Korea after the pandemic. This journey platform permits customers to find and ebook Korean pop (Ok-pop) themed spots, together with filming areas for well-liked boy band BTS music movies. Lee mentioned it plans to function Startrip as a separate entity to boost its service with superior expertise.
Myrealtrip additionally invested in IwaTrip, a Korean journey platform that helps customers discover obtainable locations to journey with youngsters, and O-Peace, a co-working and co-living house platform designed for digital nomads.
Expertise will probably be key to its long-term success by pushing each inbound and outbound journey customers and overseas vacationers to compete towards rivals resembling SoftBank-backed Klook, which raised $210 million final month; Yanolja; agoda; and Airbnb.
Lee mentioned the corporate, which makes use of AI chatbots for customer support, will make investments extra in expertise, together with AI capabilities, forward of its deliberate 2026 preliminary public providing.
Returning traders BlueRun Ventures Korea and IMM Funding co-led the spherical, bringing the overall quantity raised to roughly $113 million (KRW150 billion) in fairness and $39 million in debt since its inception in 2012. New traders Korelya Capital, which is its first funding marks in South Korea, and Vanderbilt College’s endowment fund and former backers together with Altos Ventures, Partech Companions, Smilegate and SV Funding additionally joined the Sequence F.
The corporate at the moment has 300 workers.