Online Travel Startup, Goomo, has secured US $50 million (INR 321.6 crore) from from a Mauritius-based fund manager Emerging India. With this funding, Goomo planning to enter the OTA (Online Travel Agents) market in India.
The raised capital will be used in building an online platform, products, marketing and establishing its off-line partner network.
Commenting on the development, a spokesperson from Emerging India said, “Over the last 12 months we have built a great team with a strong foundation. We are excited about the growth prospects of the business and expect the team to create a great India focused travel distribution business in the next 2 – 3 years.”
Online Travel Startup Goomo Holdings was established after Emerging India acquired Orbit Corporate and Leisure Tours in November 2015, and then launched the online platform, Goomo.com, in March 2017 with an intent to focus on the fast-growing b2c travel segment. Goomo.com launched its services with Flights, Holidays and Trade Fairs and will soon be launching hotels, trains, buses and visas on-line.
Rupen Vikamsey, CEO, Orbit Tours and Travels, said: “Emerging India has picked up a majority stake in our company and we will continue to operate the 14 stores we own.”
Varun Gupta, CEO Goomo, said “Over the last 12 months, we have successfully integrated Orbit, built a great team with strong industry experience and a robust technology platform.It is early days, but we are already getting great feedback from customers. Given the potential in the travel sector, we aim to establish ourselves as one top 3 travel platforms in India in next 3-5 years.”.
“Goomo is being built ground up to be an Omni-channel platform that will facilitate corporate and consumer travel booking across online and offline channels.” he added further.
This round is one of the largest raised by a startup operating in the online travel space, outside the big two players – Nasdaq-listed firm MakeMyTrip and Yatra and therefore it is the evidence of increasing investor participation in the space.
PE funds running travel companies in India include the likes of Thomas Cook, which is now owned by Fairfax. MakeMyTrip and Goibibo have also been funded by PE players.
In March this year, Gurgaon-based Le Travenues Technology Pvt Ltd, which runs online travel search engine ixigo, raised $15 million (about Rs 100 crore) in a Series B funding round led by Sequoia Capital.