Traveloka secures $300m in financing to fuel growth

Indonesia: Jakarta-based online travel agency and app, Traveloka, has announced that it has secured $300 million in fresh funding.

As well as Indonesia Investment Authority [INA] – the newly-created sovereign wealth fund of Indonesia, BlackRock, Allianz Global Investors, Orion Capital Asia and other global financial institutions also invested in the online travel agency.

It was reported that the financing round attracted “significant” interest from a number of long-term capital providers, resulting in an oversubscribed transaction.

The investment, which brings Traveloka’s total funding to date to $1.2 billion, will contribute to the sustained growth of Traveloka  across Asia and the digital travel ecosystem.

INA CEO Ridha Wirakusumah said: “The pandemic has accelerated digital transformation. Customer behaviour changes, coupled with innovative technological services, mean digitisation will help drive economic recovery.

“Supporting the travel sector with their unparalleled convenience and access, online travel agencies have further transformed the industry landscape during the Covid-19 pandemic. For example, OTAs have seen their share of Indonesia’s gross tourism booking increase from 24 per cent pre-pandemic to 33 per cent in 2021 with an expectation to reach 36 per cent by 2024.

“We are pleased about Traveloka’s financing round in collaboration with BlackRock, Allianz Global Investors and Orion and other leading global financial institutions, as it aligns with INA’s mission to create prosperity for Indonesia in the long term, by laying down the foundation for a sustainable digital ecosystem, including digital infrastructure, digital services and digital platforms — which will go a long way to drive economic recovery and growth.

“We believe that Traveloka is Indonesia’s national and regional champion and is also a key catalyst toward digitalisation of travel and accommodation in Indonesia and the region. We believe this joint investment can enable Traveloka to deepen its leadership and create value for the entire travel ecosystem,” added Wirakusumah.

Ferry Unardi, co-founder and CEO of Traveloka, said: “We are very pleased to be able to add INA, BlackRock, Allianz Global Investors, Orion and others to our existing group of committed investors who believe in our vision to fulfil the travel and lifestyle aspirations of our users. As our business continues to accelerate while the industry emerges from the pandemic, this financing allows us an opportunity to further strengthen our balance sheet and enable us to continue to focus on our core business while also building for the future.”

Founded in 2012, Traveloka raised $250 million in July 2020 to enhance its operations during the coronavirus crisis and restore confidence in the “resilience and the viability of the regional travel industry”. At the time, the company said that it would use the funding to build “a more robust and integrated travel and lifestyle portfolio in key markets as well as expanding its financial services solutions to better support ecosystem partners”.