In travel tech, 4 rivals merge in Europe to form Altido for property management of Airbnb-style homes

The growth of Airbnb and other big travel startups has given a fillip to the wider travel industry, and today several smaller startups in the short-term property sector are announcing that they have merged to tackle the opportunity with more scale.

The UK’s BnbBuddy and The London Residents Club, along with both Hintown from Italy and RentExperience from Portugal — all companies that help manage properties that are listed on platforms like Airbnb — have combined to form a new startup called Altido.

Going into the merger, all four were profitable, having all been boostrapped from day one. But Michael Allen, the MD of the BnbBuddy, said that now the combined entity is using its scale and raising outside funding to grow the business. Altido is looking to raise a Series A in the tens of millions of dollars. It is not disclosing its valuation currently although the fact that it already has an international presence and profitability have helped it in this area, Allen said.

The combined company will have about 1,700 properties under management in 21 European destinations, which it will be using as the anchor for an aggressive push both on existing markets as well as other parts of Europe and beyond. There is a long way to go: as a point of comparison, when Guesty — which provides services to manage rentals of private homes on Airbnb and other services — announced $35 million in funding in March, the number of properties managed on its platform had reached 100,000 across 70 countries.

Other competitors will include the platforms themselves where these properties are getting listed: as Airbnb inches to an IPO, it’s adding ever more services and features to its platform to diversify its revenue streams and also bring in more revenues per customer. (As we’ve said before, that could also make Altido and others like it acquisition targets.)

The growth of Altido’s individual businesses up to now has been on the back of the massive growth surge we’ve seen around platforms — marketplaces, to be more precise — that help people easily list and rent out travel accommodation in private homes as an alternative to hotels; and would-be visitors to find, book and pay for these in an efficient and reliable way, alongside a wider growth of self-catering accommodations that exist as alternative to traditional hotels.

The wider market for “homesharing”, as the first of these categories is sometimes called, has become massive — with Airbnb, the outsized startup leading the charge, now valued at $35 billion — and it now accounts for some 20 percent of the supply of rooms globally by Altido’s estimate.

Some property owners are happy to play host and run and manage their own listings on these platforms — which include the likes of Airbnb, Homeaway and VRBO, and many others — but a big part of the scaling of these services has come by way of third-party management companies that handle different aspects of those listings, from cleaning before and after guests and stocking kitchens and bathrooms with consumables; to managing the relationship with the visitors; to managing the listings themselves.

Altido provides an end-to-end service for those who do not want to play host, alongside a business where it also helps maintain and manage service apartments and aparthotels and guesthouses.

Today the companies that make up Altido rely on third-party platforms to disseminate all those listings, but longer-term, the plan will be to build out more services to offer listings directly as well, alongside more technology to help hosts and other management companies optimise pricing and details around the properties themselves to make them more attractive.

“We see tech as a big enabler,” Goncalo Ribeiro, the founder of RentExperience, said in an interview. He said that his company already has proprietary algorithms that it uses to help calculate property risk factors, which it already uses and will roll out across the whole of the merged company, and the different operations have already been building technology to help onboard properties more efficiently. Areas that it hopes to address include “regulation risk, potential growth rates, historic market data, marketing calculations and more. Any decision we take we want to be proven by data.”

Pana raises $10 million to help companies arrange travel for onsite interviews

Your last 10 emails with a recruiter before an onsite interview probably shouldn’t be about rebooking your canceled flight.

Pana is a Denver startup now setting its sights on the corporate travel market, with a specific eye towards killing the back-and-forth email or spreadsheet coordination. The startup, founded in 2015, first tried to gain an inroad with consumers, but its $49 per month individual-focused travel concierge plan probably limited its reach.

The company’s latest shot at taking on corporate travel lets companies use the service to outsource dealing with out-of-network “guests.” The startup is looking to take this path as an inroad into the broader corporate travel market, and is making the apparent choice to work with more expansive corporate travel companies like SAP’s Concur rather than against them, initially at least.

The company just closed a $10 million Series A round led by Bessemer Venture Partners with participation from Techstars, Matchstick Ventures, and MergeLane Fund. Previous investors also include 500 Startups, FG Angels and The Galvanize Fund.

Pana is already booking thousands of trips per month for companies using the service to coordinate business travel for interviewees. Rather than leaving recruiters to the arduous process of back-and-forth messaging to hammer out initial details, Pana takes care of it through an omni-channel mesh of automation and human concierge in-app chat, text or email.

“A key piece of the value proposition is that if you do ask something complex, we’re going to instantly connect you to a human agent,” founder Devon Tivona told TechCrunch in an interview. “When it does go to a person, we have a five-minute response time.”

Getting a flight booked for someone outside the company directory can be challenging enough, but with travel, everything grows infinitely more complex the second that something goes awry. In addition to functioning as a tool for coordination, the startup’s team of assistants are there to help re-book flights or re-arrange travel if everything doesn’t go according to plan.

Even if Pana is working with the big corporate travel agencies today, its investors are banking on the startup accomplishing what the giants can’t at their scale.

“…Whenever a really large incumbent, particularly in software gets acquired, and I’m thinking about when SAP acquired Concur five or so years ago, it creates this massive innovation gap that allows, I’d say, new startups to really reinvent the status quo,” Bessemer partner Kristina Shen told TechCrunch in an interview.

Pana’s current customers include Logitech, Quora and Shopify, among others.

China’s Ctrip now owns half of India’s MakeMyTrip following share swap with Naspers

China’s Ctrip, the world’s second largest online travel company, is doubling down on India after it announced a deal to increase its ownership of travel company MakeMyTrip to nearly half.

Ctrip will boost its ownership of MakeMyTrip, which is listed on the Nasdaq like Ctrip, to 49 percent through an exchange deal that sees Naspers, the South African internet giant and early backer of Tencent, swap its shares for 5.6 percent of Ctrip. Ctrip said the investment leaves it with four percent of MakeMyTrip’s voting power.

On paper, each stake is worth around $1.3 billion. MakeMyTrip has a current market cap of $2.69 billion while Ctrip’s current share price gives it an overall valuation of $23.5 billion. In the industry, only Booking Holdings is valued higher with a current market cap of $84 billion.

There’s a long history between the three companies. Ctrip and Naspers invested $330 million into MakeMyTrip two years ago, a move that saw Naspers deepen its involvement after its portfolio company Ibibo merged with MakeMyTrip in January 2017. Prior to that, Ctrip invested $180 million into the India company in January 2016.

“Over the past years we have witnessed the great achievements of MakeMyTrip, and we are confident that MakeMyTrip will extend its success in the future,” read a statement from James Liang, co-founder and executive chairman of Ctrip.

“We are also delighted to welcome Naspers to become our shareholder. Ctrip will continue to work hard to create greater value to our customers, our partners and all shareholders,” added Ctrip CEO Jane Sun.

MakeMyTrip co-founder and co-CEO Rajesh Magow said the deal would take his company’s partnership with Ctrip “to the next level.”

The deal comes as Naspers prepares to list its international business, which includes advertising giant OLX and stakes in numerous internet companies, in the Netherlands.

Ctrip’s past deals have included the $1.74 billion acquisition of Scotland-based Skyscanner and the undisclosed purchase of U.S-based travel discovery app Trip.com. It has also invested $463 million in China Eastern Airlines and swapped shares with Chinese rival Qunar.

Today’s share swap deal is forecast to close in this current Q2, according to an announcement from Ctrip.

Airbnb officially owns HotelTonight

Airbnb has completed its acquisition of the last-minute hotel booking application, HotelTonight, the company announced on Monday. The deal is Airbnb’s largest M&A transaction yet, and will accelerate the home-sharing giant’s growth as it gears up for an initial public offering.

Airbnb reportedly began talks to acquire HotelTonight months ago, and finally confirmed its intent to acquire the business in early March. Reports indicated a price tag of more than $400 million; Airbnb declined to comment on the size of the deal.

As part of the deal, HotelTonight co-founder and chief executive officer Sam Shank will lead the boutique hotel category at Airbnb, one of the company’s newer units meant to help it scale beyond treehouses and quirky homes.

“When we founded HotelTonight, we sought to reimagine the hotel booking experience to be more simple, fast and fun, and to better connect travelers with the world’s best boutique and independent hotels,” Shank said in a statement. “We are delighted to take this vision to new heights as part of Airbnb.”

Shank launched the San Francisco-based company in 2010. Most recently, it was valued at $463 million with a $37 million Series E funding in 2017, according to PitchBook. HotelTonight raised a total of $131 million in equity funding from venture capital firms including Accel, Battery Ventures, Forerunner Ventures and First Round Capital.

Guesty, a tech platform for property managers on Airbnb and other rental sites, raises $35M

The growth of Airbnb — and likewise other platforms like Booking.com, VRBO and Homeaway for listing and renting short-term accommodation in private homes — has spawned an ecosystem of other businesses and services, from those who make money renting their homes, to cleaning companies that make properties “Airbnb-ready”, to those who help design listings that will get more clicks. Airbnb has seen some wild success so far, but it turns out that being a part of that ecosystem can be a lucrative business, too.

Today, Guesty — a Israeli startup that provides a suite of tools aimed at property managers that list on these platforms — is announcing that it has raised $35 million, money that it will use to fuel its growth, after seeing the number of properties managed in some 70 countries through its tech double to over 100,000 in the last year.

The company is not disclosing valuation with this round, which was led Viola Growth with participation also from Vertex Ventures, Journey Ventures, Kingfisher Investment Advisors, La Maison Compagnie d’Investissement, TLV Partners and Magma Ventures. But Amiad Soto, the CEO and co-founder, noted that it too has “more than doubled” since its last funding almost a year ago. PitchBook notes that round was around $90 million post-money, so this would put the current valuation at at least $180 million, likely more.

The idea for Guesty came about like many of the best startup ideas do: out of a personal need. In 2013, twin brothers Amiad and Koby were renting out their own apartments on Airbnb, and found themselves spending a lot of time doing the work needed to list and manage those properties.

Their first stab at a business was an all-in-one service to help hosts get their properties ready and subsequently tidied up for listings. “I was cleaning apartments, Koby was doing the business development, and my girlfriend was doing the laundry,” Soto told me in an interview. They quickly realised that this was never going to scale, “and also that our competitive advantage was building software. We are computer geeks.”

So the company quickly pivoted to building a platform that could provide all the tools that property managers — who work with individual property hosts/owners and had started emerging as key players as Airbnb itself scaled out — needed to juggle multiple listings. (That girlfriend is now his wife, so seems like they may have pivoted just in time.)

Guesty started as SuperHost and, like Airbnb, went through the Y-Combinator accelerator. It eventually rebranded to Guesty, and it now provides tools in a dozen areas that touch property managers and the job they do: Channel Manager (“channel” being the platform where the property is being listed), Multi-Calendar, Unified Inbox, Automation Tools, Mobile Management App, Branded Website Task Management, Reporting Tools, Owners Portal, Payment Processing, Analytics, Open API, 24/7 Guest Communication.

The plan is to complement that in coming years with more “smart” tools: the company is introducing AI and machine learning elements that will help it suggest more services to users, and for managers to use to do their jobs better. (One example of how this might work: if you have a property manager in New York City, and the city regulator changes something in the tax code for properties in Brooklyn, this will now be suggested through to managers whose properties are affected, and this can help with pricing modelling down the line if the manager, say, wanted to keep a specific margin on rentals.)

Perhaps because short-term property renting is a relatively new area of the accommodation and residential market, it’s fairly fragmented, and so Guesty is providing a clear move to consolidate and simplify some of that work.

“There are about 700 different services and other things that go into short-term property rentals,” Soto noted when I asked him about this. “It would take me hours to go through it all with you.”

And indeed, the market itself is much bigger than what Guesty is currently working with. Soto estimates that there are around 7 million properties now collectively getting listed on these short-term letting platforms, speaking to the opportunity ahead.

Guesty very much got its start with Airbnb and that helped it not only establish what property managers needed, but also to forge a close relationship with Airbnb at a time when it wasn’t yet building many bridges to third-party services. Soto said Guesty built its own private API to use with Airbnb, and subsequently helped inform how Airbnb eventually build an API that others could use.

It’s still a trusted partner in that regard. Now that Airbnb is moving into multi-dwelling arrangements — that is, rooms in hotels (which will now expand with its HotelTonight acquisition), plus multiple apartments in single buildings for big groups that might want to secure bookings at several places at once — it will very soon be launching a tool for these kinds of listings. Guesty has helped in the building of that, too.

Still, the opportunity for short-term lettings is bigger than Airbnb itself these days. Booking.com and its many subsidiary businesses have made a big move into this area, as have many other companies, and Guesty now handles bookings on a number of “channels”. Soto said on average, the number of bookings on its platform that are listing on Airbnb is 60 percent, with some vacation spots seeing the percentage much lower, and some urban markets seeing a much higher penetration.

This is one of those cases where being an early mover in identifying a market opportunity has worked in a startup’s favor. Guesty’s strong work with Airbnb has helped the startup build stronger ties with those companies that hope to compete with it and give Airbnb a run for its money: Booking.com, Soto notes, is a premier partner these days.

“Guesty was the first to recognize the potential of the property management market and has quickly become a category leader with its vertical-oriented, end-to-end approach,” said Natalie Refuah, partner at Viola Growth, in a statement. “Technology and AI continue to disrupt the innovation stack, acting as a catalyst to the digitization of “traditional” areas such as real estate and travel. Guesty is leading the charge, fostering a more seamless experience for property managers while providing clear advantages to customers and ultimately, their guests. We believe that with its experienced and elite executive team, Guesty is fully equipped to modernize and revolutionize the property management ecosystem.” Refuah is joining Guesty’s Board of Directors.

Guesty, a tech platform for property managers on Airbnb and other rental sites, raises $35M

The growth of Airbnb — and likewise other platforms like Booking.com, VRBO and Homeaway for listing and renting short-term accommodation in private homes — has spawned an ecosystem of other businesses and services, from those who make money renting their homes, to cleaning companies that make properties “Airbnb-ready”, to those who help design listings that will get more clicks. Airbnb has seen some wild success so far, but it turns out that being a part of that ecosystem can be a lucrative business, too.

Today, Guesty — a Israeli startup that provides a suite of tools aimed at property managers that list on these platforms — is announcing that it has raised $35 million, money that it will use to fuel its growth, after seeing the number of properties managed in some 70 countries through its tech double to over 100,000 in the last year.

The company is not disclosing valuation with this round, which was led Viola Growth with participation also from Vertex Ventures, Journey Ventures, Kingfisher Investment Advisors, La Maison Compagnie d’Investissement, TLV Partners and Magma Ventures. But Amiad Soto, the CEO and co-founder, noted that it too has “more than doubled” since its last funding almost a year ago. PitchBook notes that round was around $90 million post-money, so this would put the current valuation at at least $180 million, likely more.

The idea for Guesty came about like many of the best startup ideas do: out of a personal need. In 2013, twin brothers Amiad and Koby were renting out their own apartments on Airbnb, and found themselves spending a lot of time doing the work needed to list and manage those properties.

Their first stab at a business was an all-in-one service to help hosts get their properties ready and subsequently tidied up for listings. “I was cleaning apartments, Koby was doing the business development, and my girlfriend was doing the laundry,” Soto told me in an interview. They quickly realised that this was never going to scale, “and also that our competitive advantage was building software. We are computer geeks.”

So the company quickly pivoted to building a platform that could provide all the tools that property managers — who work with individual property hosts/owners and had started emerging as key players as Airbnb itself scaled out — needed to juggle multiple listings. (That girlfriend is now his wife, so seems like they may have pivoted just in time.)

Guesty started as SuperHost and, like Airbnb, went through the Y-Combinator accelerator. It eventually rebranded to Guesty, and it now provides tools in a dozen areas that touch property managers and the job they do: Channel Manager (“channel” being the platform where the property is being listed), Multi-Calendar, Unified Inbox, Automation Tools, Mobile Management App, Branded Website Task Management, Reporting Tools, Owners Portal, Payment Processing, Analytics, Open API, 24/7 Guest Communication.

The plan is to complement that in coming years with more “smart” tools: the company is introducing AI and machine learning elements that will help it suggest more services to users, and for managers to use to do their jobs better. (One example of how this might work: if you have a property manager in New York City, and the city regulator changes something in the tax code for properties in Brooklyn, this will now be suggested through to managers whose properties are affected, and this can help with pricing modelling down the line if the manager, say, wanted to keep a specific margin on rentals.)

Perhaps because short-term property renting is a relatively new area of the accommodation and residential market, it’s fairly fragmented, and so Guesty is providing a clear move to consolidate and simplify some of that work.

“There are about 700 different services and other things that go into short-term property rentals,” Soto noted when I asked him about this. “It would take me hours to go through it all with you.”

And indeed, the market itself is much bigger than what Guesty is currently working with. Soto estimates that there are around 7 million properties now collectively getting listed on these short-term letting platforms, speaking to the opportunity ahead.

Guesty very much got its start with Airbnb and that helped it not only establish what property managers needed, but also to forge a close relationship with Airbnb at a time when it wasn’t yet building many bridges to third-party services. Soto said Guesty built its own private API to use with Airbnb, and subsequently helped inform how Airbnb eventually build an API that others could use.

It’s still a trusted partner in that regard. Now that Airbnb is moving into multi-dwelling arrangements — that is, rooms in hotels (which will now expand with its HotelTonight acquisition), plus multiple apartments in single buildings for big groups that might want to secure bookings at several places at once — it will very soon be launching a tool for these kinds of listings. Guesty has helped in the building of that, too.

Still, the opportunity for short-term lettings is bigger than Airbnb itself these days. Booking.com and its many subsidiary businesses have made a big move into this area, as have many other companies, and Guesty now handles bookings on a number of “channels”. Soto said on average, the number of bookings on its platform that are listing on Airbnb is 60 percent, with some vacation spots seeing the percentage much lower, and some urban markets seeing a much higher penetration.

This is one of those cases where being an early mover in identifying a market opportunity has worked in a startup’s favor. Guesty’s strong work with Airbnb has helped the startup build stronger ties with those companies that hope to compete with it and give Airbnb a run for its money: Booking.com, Soto notes, is a premier partner these days.

“Guesty was the first to recognize the potential of the property management market and has quickly become a category leader with its vertical-oriented, end-to-end approach,” said Natalie Refuah, partner at Viola Growth, in a statement. “Technology and AI continue to disrupt the innovation stack, acting as a catalyst to the digitization of “traditional” areas such as real estate and travel. Guesty is leading the charge, fostering a more seamless experience for property managers while providing clear advantages to customers and ultimately, their guests. We believe that with its experienced and elite executive team, Guesty is fully equipped to modernize and revolutionize the property management ecosystem.” Refuah is joining Guesty’s Board of Directors.

GoEuro rebrands as Omio to take its travel aggregator business global

European multimodal travel booking platform GoEuro has announced a change of name and destination: Its new ambition is to go global, scaling beyond its regional grounding to tackle the challenge of intercity travel internationally — hence needing a more expansive brand name.

The name it’s chosen is Omio, pronounced with the stress on the ‘me’ sound in the middle of the word.

GoEuro unveiled a new brand identity late last year — which it says now was preparing the ground for this full rebranding.

So why Omio? CEO and founder Naren Shaam tells TechCrunch the new name was chosen to be memorable, lighthearted and neutral. A word that travels inoffensively across languages was also clearly essential.

“It took a while — probably eight months — to do the search on the name,” he says. “The hard thing about the name is a few criteria we had. One was that it had to be short, easy to remember, and four letter names are just non-existent now.

“It had to be lighthearted because travel inherently comes with a lot of stress to consumers… Every time you book travel it’s a lot of anxiety and then relief after you book it etc. So we want to change that behavior to customers; saying we will take care of your journey.”

The multimodal travel startup, which was founded back in 2012, also says it’s happy to have been able to retain a ghost of its old brand — thanks to the double ‘o’ in both names — which it intends to suggestively stand in for the beginning and end of a journey.

In Europe the travel aggregator tool that’s been known since launch as GoEuro — and soon, within a matter of weeks, Omio, everywhere it operates — has some 27 million monthly users tapping into the convenience of a platform that knits together train travel, bus trips, flights and most recently ferries to offer the most comprehensive coverage available of longer distance travel options in the region.

Europe is heavily networked for transport, with multiple intercity travel options to choose from. But it is also massively fragmented across a huge mix of providers (and languages) making it challenging for travellers to navigate, compare and book across so many potential options.

Taming this complexity via a multimodal search and comparison tool that now also integrates booking for most ground-based travel options (and some flights) on one platform has been GoEuro’s mission to-date. And now it’s Omio’s tackle globally.

“Global transport is not on a single product. What we bring is way more than just air, in terms of all ground transportation,” says Shaam. “So for me the problem of how do I get from Kyoto to Tokyo, or Rio to Sao Paulo. Or somewhere in Southeast Asia in Thailand is still a global problem. And it’s not yet solved. And so for us it’s the right time to evolve the brand… It’s definitely time to step out and say we want to build a global brand. We want to be that transport product across the world where we can serve all transport globally.”

While GoEuro is in some senses a quintessentially European business — Shaam says he “couldn’t have imagined” building a multimodal transport platform out of the US, for instance, where travel is so dominated by airlines and cars — he suggests that sets the business up to tackle similar complexity elsewhere.

Putting in the hard graft of negotiating partnerships and nailing technical integrations with multiple transport providers, large and tiny, also isn’t the sort of tech business prone to fast-following platform clones. So Omio suggests competition at a global scale will most likely be piecemeal, from multiple regional players.

“When I look beyond Europe the problem that I experienced in Europe in 2010 [which inspired me to set up GoEuro] is definitely a problem I experience still globally,” he says. “So when we can figure out how to bring 100,000 remote train and bus stations plugged into a uniform, normalized product and then give a single-click mobile ticket that works everywhere why not actually solve this problem globally?”

That translates into having “the engineering and the product and the means” to scale what GoEuro has done for travel in Europe internationally, moving to other continents with their own blend and mix of transport options and challenges.

Shaam notes that Omio employs more than 200 engineers within a company that has a staff of 300 — emphasizing also that the partnerships plus all the engineering that sits behind the aggregator’s front end take a lot of resource to maintain.

“I agree it is such a European startup. And it has served us well to get 27M monthly users traveling across Europe. Last year alone we served something like eight million unique routes. So the density of routes that we have is great. We already have global users; we have users from 100+ countries,” he says, adding: “If you look at Europe, European companies are starting to go on the global stage more and more now.

“You can see Spotify being one of the largest global tech companies coming out of Europe. You’ve seen some in the fintech space. Industries where there’s heavy fragmentation in Europe allow us to build global products because Europe is a great product market.”

GoEuro — now Omio — founder and CEO, Naren Shaam

On the international expansion horizon, Omio says its considering expanding into South America, Asia and the U.S. Although Shaam says no decisions have yet been taken as to the regions and markets it might move into first.

He also readily accepts the goal of building a global travel aggregator is a long term mission, with the partnerships, engineering and legacy technology integrations that will have to underpin the expansion all requiring time (and money) to work through.

There’s also no suggestion that Omio intends to offer a more lightweight transport proposition as a strategy to elbow its way into new markets, either.

“If we go into the U.S. the goal is not to just offer another airline product,” he says. “There’s enough websites out there that do exactly that. So we will offer something different. And our competition will also be regional companies that offer something similar in each market.”

In a year’s time, Shaam says he hopes to have further deepened the platform’s coverage and usage in Europe — noting there are more transport dots to connect in markets including Portugal, Ireland, Norway, Sweden, plus parts of Eastern Europe (as well as “very heavily fragmented” bus providers in Spain and Italy).

By then he says he also wants to have “a clear answer to what are the two next big continents we want to expand into and have people that are ready to do that”.

So connecting the dots of intercity travel is very evidently a far slower-paced business than heavily VC-backed innercity transport plays — which have attracted multiple billions in funding in very short order thanks to fast usage velocity and revenue growth vs GoEuro’s modest (by contrast) ~$300M.

Nonetheless Shaam is convinced the intercity opportunity is still “a big market”. Perhaps not as massive as micromobility, ride-hailing and so on but still big and relatively under-invested, as he sees it.

So how will GoEuro as Omio approach scaling a travel business that is, necessarily, so very grounded in fixed and non-uniform transport infrastructure? He suggests the business will be able to draw on what is already years of experience integrating with transport providers of various types and sizes to support the new global push.

It’s developed what he describes as an “a la carte” menu of products for different sized travel providers — arguing this established menu of tools will help scale into new markets in fresh geographies, even while conceding there are other aspects of the business that will not be so easily replicable.

“Over time we built a lot of tooling that adapts to the different types of suppliers. So, for example, if you’re a large state-owned operator… that has very different systems built for decades basically vs a tiny bus company that runs from Naples to Positano that nobody even knows the name of or no technology it stands on we have different products that we offer to each of them.

“We have all the tooling built out so it’s basically ‘plug and play’ for us to do. So this thing doesn’t change. That’s portable.”

What will be new for Omio is international product market fit, with Shaam saying, for example, that it won’t necessarily be able to rely on the same sort of network effects it sees in Europe that help drive usage.

He also notes mobile penetration rates will differ — again requiring a different approach to serving customer needs in new regions such as Latin America.

“It’s not quick,” he concedes. “That’s why we’d rather launch now because I can’t tell you that in three months we’ll have had four more continents covered, right. This is a long term play but we’ve raised enough capital to make sure we’re here for that long term journey.”

“We have a name that people know and we can build technology,” he adds, expanding on what Omio can bring to the table as it tries to sell its platform to travel providers everywhere. “We’ve worked with 800+ suppliers. So from a commercial standpoint, people know who we are and how much scale we can bring in terms of their fixed cost businesses — so we can sell a lot of tickets for all of them. We can bring international tourists from a global audience. And we can really fill up seats. So people know that you put your supply on our product and we instantly scale because the existing demand is just so large.”

The Berlin-based startup closed a $150M funding round last fall so it’s not short of immediate resources to support the new hires it’ll be looking to add to start building out its global roadmap.

Shaam also notes it brought in more Asian capital with its last round, which he says he hopes will help “with this globalization capital”. Most of the investors it added then are also geared towards longer term returns vs traditional VC, he adds.

Omio is not currently in the process of raising another funding round, according to Shaam, though he confirms it does plan to raise more in future as it works towards the global vision of a single platform to help travellers move all over the world.

“The amount of capital that’s gone into intercity transport is tiny compared to innercity transport,” he notes. “That means that if you’re still going after a global problem that we want to solve that means that we need to raise capital at some point in the future. For now we’re just very comfortable with what we have but it doesn’t mean that we’ll stop.”

One potential future market Omio is likely to approach only very cautiously is China.

A b2c partnership with local travel booking platform Qunar, which GoEuro inked back in 2017, to link Chinese consumers with European travel opportunities, means Omio has a commercial reason to be sensitive of any moves into that market.

The complexity and challenge of going into China as an outsider is of course another major reason to go slow.

“I want to say very carefully that China is a market we need a lot more time to understand before we go into, as I think there’s enough lessons learned from all the tech companies from the West,” says Shaam readily. “It’s not going to be a rushed decision. So in that case the partnership with have with Qunar — I don’t see any changes in the near term because going into China is a big step for us. And it’s not an easy decision anyway.”

Grab invests $100M into India’s OYO to expand its budget hotel service in Southeast Asia

Southeast Asian ride-hailing firm Grab has made its most ambitious investment to date after it backed India-headquartered budget hotel network OYO to the tune of $100 million. The investment was part of a $1 billion Series E round led by SoftBank’s Vision Fund that closed back in September.

The deal was first made public via a regulatory filing in India, as Economic Times reported.

“We can confirm the investment into OYO,” a Grab spokesperson told TechCrunch.

Grab has done a handful of strategic deals thus far, including investments in bike-sharing startup oBike and grocery delivery service HappyFresh, but those have been far smaller and local to Southeast Asia. Its highest acquisition to date is around $100 million for Indonesia-based offline payment network Kudo some 18 months ago.

The deal with OYO is not only far higher but also outside of its immediate home turf, which spans eight countries in Southeast Asia. OYO’s business is heavily focused on India and China, but the company is also active in Nepal, Malaysia and, most recently, the UK. That Series E deal was aimed at funding international growth and it looks like Grab will work closely with the company to help expand its presence in Southeast Asia, a region with over 650 million consumers and a fast growing digital economy.

A source with knowledge of discussions told TechCrunch that Grab was primarily motivated to partner with OYO for its potential to boost its GrabPay service. The core idea here is that GrabPay could become the preferred payment method for OYO in Southeast Asia, thereby boosting Grab’s ambition of dominating the region’s mobile payment space.

OYO claims to have over 10,000 franchised or leased hotels in its network which it says spans 350 cities across five countries, although most of that is concentrated on India and China. In the latter country, OYO says it offers 87,000 rooms in 171 cities after launching in the country in June 2018.

Southeast Asia, where OYO is already present via Malaysia, is an obvious next step and Grab could also give it a helpful boost to reaching customers by including its service on its in-app platform. Months after a deal to buy Uber’s local business in exchange for a 27.5 percent equity stake, Grab unveiled a ‘platform’ designed to aggregate services in the region to give its audience of over 110 million registered users visibility of services that they may like. That, in turn, can help companies tap into the Grab userbase, although some users have complained that Grab’s app is increasingly ‘cluttered’ with additional services and information beyond basic transportation.

Grab has already partnered with travel giant Booking — which recently invested $200 million in its business — to offer deals to its users, and it is quite conceivable that it could do the same with OYO to help the Indian firm’s efforts in Southeast Asia.

The $11 billion-valued ride-hailing firm isn’t short of cash — having raised over $3 billion this year — so it can afford to make the occasional splashy investment. However, it might need a budget reallocation. That’s because Indonesian rival Go-Jek’s continued Southeast Asia expansion is threatening to reignite a subsidiary war that Grab probably thought it had won for good after Uber’s exit. It’ll be interesting to watch how that competition weighs in Grab’s overall effort to go from ride-hailing into the ‘super app’ space, covering payments, local services and more.

Taiwan-based travel startup AsiaYo raises $7M Series B led by Alibaba Taiwan Entrepreneurs Fund

AsiaYo, a travel accommodation booking platform based in Taipei, Taiwan, has raised a $7 million Series B led by Alibaba Taiwan Entrepreneurs Fund, a non-profit initiative run by the Chinese e-commerce giant, and China Development Financial. Darwin Ventures and Delta Ventures also participated in the round, which brings AsiaYo’s total raised since its launch in 2014 to $10 million, including a $3 million Series A.

Founded by CEO C.K. Cheng, AsiaYo has grown over the past four years to a team of about 100 people and now claims about 300,000 members on its site. In addition to Taiwan, the platform also operates in Japan, Korea, Hong Kong, and Thailand, and says overseas bookings account for 60% of its business. AsiaYo’s new funding will be used to launch in new markets, with operations in Singapore and Malaysia and a new Japanese website slated to launch next year. Cheng told TechCrunch that it picked Singapore and Malaysia as its newest markets because of the amount of travel between the two countries, which are next to one another.

AsiaYo works with 50 partners, including Hong Kong Airlines, KKday, and Rakuten LIFULL STAY, to provide reward programs and deals on vacation bookings. The website is currently available in English, Chinese, and Korean and claims 60,000 listings across 60 cities. The startup targets younger tourists traveling within Asia with what it calls “hyper-personalized journeys” created with the help of its AI-based algorithm AYSort, which analyzes user behavior to provide booking suggestions.

In a press statement, Alibaba Taiwan Entrepreneurs Fund executive director Andrew Lee said “With rapid economic development across Asia, we have seen a significant rise in inter-regional tourism. AsiaYo has capitalized on this trend, demonstrating its growth potential. We’re currently working with AsiaYo to further develop technological capabilities in the travel industry.”

AsiaYo’s listings include a combination of rooms, apartments, hostels, and hotels, which means it competes against a wide variety of other accommodation booking sites, like Airbnb, Agoda, and HotelQuickly. The startup differentiates, however, by verifying listings with landlords before they go live for quality assurance and to “inspire travelers to step out of their comfort zone,” said Cheng. The company also provides multi-lingual customer support through several channels, including Line, Facebook, WeChat, and its own helplines.

Taiwan-based travel startup AsiaYo raises $7M Series B led by Alibaba Taiwan Entrepreneurs Fund

AsiaYo, a travel accommodation booking platform based in Taipei, Taiwan, has raised a $7 million Series B led by Alibaba Taiwan Entrepreneurs Fund, a non-profit initiative run by the Chinese e-commerce giant, and China Development Financial. Darwin Ventures and Delta Ventures also participated in the round, which brings AsiaYo’s total raised since its launch in 2014 to $10 million, including a $3 million Series A.

Founded by CEO C.K. Cheng, AsiaYo has grown over the past four years to a team of about 100 people and now claims about 300,000 members on its site. In addition to Taiwan, the platform also operates in Japan, Korea, Hong Kong, and Thailand, and says overseas bookings account for 60% of its business. AsiaYo’s new funding will be used to launch in new markets, with operations in Singapore and Malaysia and a new Japanese website slated to launch next year. Cheng told TechCrunch that it picked Singapore and Malaysia as its newest markets because of the amount of travel between the two countries, which are next to one another.

AsiaYo works with 50 partners, including Hong Kong Airlines, KKday, and Rakuten LIFULL STAY, to provide reward programs and deals on vacation bookings. The website is currently available in English, Chinese, and Korean and claims 60,000 listings across 60 cities. The startup targets younger tourists traveling within Asia with what it calls “hyper-personalized journeys” created with the help of its AI-based algorithm AYSort, which analyzes user behavior to provide booking suggestions.

In a press statement, Alibaba Taiwan Entrepreneurs Fund executive director Andrew Lee said “With rapid economic development across Asia, we have seen a significant rise in inter-regional tourism. AsiaYo has capitalized on this trend, demonstrating its growth potential. We’re currently working with AsiaYo to further develop technological capabilities in the travel industry.”

AsiaYo’s listings include a combination of rooms, apartments, hostels, and hotels, which means it competes against a wide variety of other accommodation booking sites, like Airbnb, Agoda, and HotelQuickly. The startup differentiates, however, by verifying listings with landlords before they go live for quality assurance and to “inspire travelers to step out of their comfort zone,” said Cheng. The company also provides multi-lingual customer support through several channels, including Line, Facebook, WeChat, and its own helplines.