TravClan raises $5 million from Flipkart, August One
Delhi-based B2B traveltech startup TravClan has raised $5 million in funding from Flipkart and investment firm August One, along with debt financing from Trifecta Capital.
With this round, TravClan has raised more than $11 million to date from investors including Leo Capital, The Ventures, Hashed, August One, Flipkart and a group of angel investors.
TravClan sells to travel agents and travel businesses rather than to travellers. Its platform brings together supply, technology and fulfilment, covering pricing, itinerary creation, bookings, payments, customer communication and on-ground support for flights, hotels, activities and international holiday packages.
The startup contracts directly with hotels and activity partners and runs its own ground teams across Southeast Asia, the Middle East and India. According to the startup, more than 15,000 travel agents across India use the platform, and it processes more than $100 million in annual travel sales. Roughly 40% of its business comes from Tier II and Tier III cities.
The startup said it will use the capital to deepen its global supply network, expand its technology and AI capabilities, and strengthen destination operations across key international markets.
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The investors' comments centre on TravClan's choice to contract directly with suppliers and run its own ground operations instead of spending on consumer acquisition.
“TravClan has built a capital efficient model by owning supply rather than buying demand, and distributing through agents in underserved markets,” said Sahil Kukreja, Vice President at Trifecta Capital.
Rajul Garg, founder and managing partner of Leo Capital, which has backed the company since its seed round, said, “We backed them when owning supply looked like the slow way to build. It has compounded in two ways, better prices, and a trip that actually works when something goes wrong. In travel, whoever owns the supply owns the economics.”
Flipkart's participation follows its announcement on 5 October that it had picked up a minority stake in TravClan. The e-commerce company said the investment would strengthen the international travel offerings on Cleartrip and Flipkart Travel, its two travel businesses.
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