Traveloka has unveiled a recent US$250 million funding round led by a global financial institution and its existing investors including EV Growth, in what the Indonesian OTA dubs "a strong vote of confidence" in its resilience and the viability of the regional travel industry.
The fresh injection of capital expected to further strengthen Traveloka’s balance sheet and boost efforts to deepen Traveloka’s offerings in select priority areas, which include building a more robust and integrated travel & lifestyle portfolio in key markets as well as expanding its financial services solutions to better support ecosystem partners.
“Without a doubt, Traveloka has been profoundly affected by the Covid-19 pandemic. We have experienced the lowest business rate that we have ever seen since our inception,” said Ferry Unardi, co-founder and CEO of Traveloka.
"However, we always believed that the company will prevail by rapidly adjusting our strategy, working with our industry and ecosystem partners, as well as continuing to innovate for our users, our ultimate focus."
While Covid-19 has led to a historic low for its business activity, Traveloka implemented necessary business optimisation measures to conserve capital and refocused its effort to prepare for an effective act in the new normal.
In Indonesia, Thailand and Vietnam, Traveloka has seen a resurgence of domestic, short-distance travel and activities bookings as the population learns to live responsibly with the pandemic. Many innovative initiatives to cater to shifting demands were launched, such as Covid-19 Test bundle with Flights, flexible open-date voucher for hotels in Buy Now Stay Later, Online Xperience programs with top Hosts, Traveloka LIVEstyle Flash Sale livestreams, and Traveloka Clean campaign, allowing users additional peace of mind when booking via Traveloka.
“I am happy to share that on the business front, we are seeing encouraging recovery across all of our key markets. Our business in Vietnam is approaching steady pre-Covid-19 levels and Thailand business is on its way to surpass 50%," said Unardi.
"Indonesia and Malaysia are still in the early stage, but they continue to demonstrate promising momentum with strong week-to-week improvement, especially in accommodation with the emergence of shorter distance staycation behaviour," he added.
"We acknowledge that the sector may go through further turbulence as it navigates new waves, but we feel we are prepared to take on the challenge and emerge on the right side of it."