Mumbai: TripFactory, which offers customized holidays, is in talks to raise a $100 million in a Series B funding round, a senior company executive said. “We are looking to raise a $100 million or even more, depending on the kind of investors we can attract," co-founder Vinay Gupta said in an interview, adding the company is in talks with various funds based in the Silicon Valley, China and Japan.
TripFactory was co-founded by Gupta, Amit Aggarwal and Varun Gupta in 2015. Vinay Gupta and Aggarwal had earlier helped co-found Via.com.
The founders of the online travel marketplace will also be engaging with investors who had backed their previous venture Via.com, which was acquired by US-based software and services company Ebix last year for $75 million.
“We will obviously go back to engage with investors who had shown confidence in us as founders, when we were raising funds for our via.com. They are Kaalari, Sequoia, Expedia, Priceline, Naspers, Temasek, Premji and new ones like Google, and Microsoft, among others," said Gupta.
In 2015, the company had raised around $10 million in Series A funding from Aarin Capital Partners, which was launched by former Infosys board member T.V. Mohandas Pai and Manipal Group chairman Dr. Ranjan Pai.
“Travel is an information industry with zero-IT, it is just oceans of people everywhere, misinformation in short. All it has seen is a little bit of software automation, more like old car rental companies using software, before Uber came in," said Gupta.
“When we started, we questioned why there were no large holiday companies, globally. You cannot try making the frying pan better, but have to come up with a microwave. It meant redefining everything. The tech platform we built to sell holidays world over was the first truly integrated global holiday company with network effects worth 100s of billions of dollars."
TripFactory is looking to scale up with its omni-channel strategy, and touch sales of 60,000-100,000 holidays per day. “You cannot reach India without building scale offline. At present, 1,000-offline travel businesses across 143 cities have done non-refundable registrations. The plan is to reach 25,000 partners across 1,000 towns and cities."
Gupta added that the company was looking to hire 400 people and set up offices across the globe, including in Dubai, Singapore, Manila, Indonesia, Thailand, Cambodia, Vietnam, and Hong Kong.
TripFactory is official partner to Jet Airways and Go Air and a key partner to IndiGo and Cathay, among others, to cash in on the customized holiday packages platform.
Companies like TripFactory are looking to cash in on the boom, with more and more Indians increasingly spending a larger share of their income on travel. Management consulting firm Praxis Global, in a report in April, said that the online travel market in India is expected to touch $13.6 billion by 2021 and will account for almost 43% of the total travel category, led by flight and hotel aggregators. India’s online travel market stood at $5.71 billion in 2015.
The report said most of the growth will come from the increasing penetration of international flights and hotel bookings offered by online portals. Indian consumers are expected to devote almost 4% of their wallet spends on travel, Praxis said.