The fate of the travel industry is still unknown due to the global pandemic, but investors see a business model that works in Berlin-based Omio and are showing it through a new $100 million investment.
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Existing and new investors including Temasek, Kinnevik, Goldman Sachs Asset Management, NEA and Kleiner Perkins, were involved in the funding round, Omio said in a written statement. Omio last raised funds in 2018, a $150 million investment, led by Kinnevik and Temasek. With this new cash infusion, Omio has amassed approximately $400 million in funding since its inception in 2012, according to Crunchbase data.
Omio, the travel platform formerly known as GoEuro, provides a search tool that enables users to find the fastest, cheapest and best travel options.
With the new funding, and based on the company’s direction with it—organic growth and potential M&A activities—it looks like the company is poised to acquire similar businesses that may be struggling in the current environment.
The company already has a presence in 37 countries in Europe and North America. Omio launched in the U.S. and Canada in January, offering ticketing for more than 23,000 train and bus routes, as well as flights.
Naren Shaam, founder and CEO of Omio, said in a written statement that in some of its markets, Germany and France in particular, the company is already above 50 percent of its pre-COVID-19 bookings despite marginal marketing spend.
“Travel is an eternal need and I have no doubt in the comeback of the industry,” he said. “We have seen a very promising recovery of our business over the past weeks, based on the unique strength of our product which includes all modes of transport across multiple markets.
“However, consumer expectations are changing and the industry will need to evolve to new standards and provide new products with a strong focus on sustainability,” he added. “We will use the fresh capital to drive this change.”