Travel App Hopper Gets Another $96 Million From Capital One | Tech US News

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TCanadian startup Hopper, a popular travel booking app, announced Monday that it has secured a $96 million investment from Capitol One, cementing a long-term partnership between the two companies. Capital One previously led Hopper’s Series F round that raised $170 million in March 2021.

“The new funds will be used to accelerate the company’s growth on several fronts, including fueling its new social commerce initiatives,” Hopper said in a statement. Forbes.

As it decreases to quantify Capital One’s equity stake in the company, Hopper said that “this investment and the extension of the partnerships demonstrate the strong traction that the companies are seeing one year after the partnership.”

Last year, Hopper and Capital One joined forces to launch Capital One Travel, a Hopper-powered travel booking portal that combines benefits for cardholders with fintech products such as price freezes, price drop protection and cancellation insurance for any reason.

“Since launch, Capital One Travel is driving travel bookings to record levels, surpassing both industry growth and pre-pandemic volumes, and repeat use of Capital One Travel continues to grow,” said Hopper.

A privately held company on track to do $4.5 billion in sales this year, Hopper claims to be the third largest online travel agency (OTA) in North America with nearly 80 million downloads of its free app.

The company enjoyed an upward trajectory during the Covid-19 pandemic, as uncertainty about travel disruptions fueled travelers’ desire to hedge their investments with one or more of the app’s fintech price protection solutions. Almost 60% of the app’s customers purchase at least one fintech product when making a reservation.

The company was cautious about its current value. “We’re a private company so we don’t release valuations,” said a Hopper spokesman. “That said, it’s a significant increase from our last valuation due to all the recent growth covered in the announcement.” At the beginning of this year, Forbes reported that Hopper was valued at $5 billion.

Despite much speculation about a future public offering, Hopper declined to put a timetable on when it might go public. “There are no specific plans for an IPO at this time,” the company said. “We are currently focused on growing the Hopper app, along with our fintech products and building the Hopper Cloud business line. Hopper is allocating all profits to marketing expenses to accelerate growth.”

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