Myrealtrip, a Seoul-based travel tech company, has successfully raised $56.7 million (75.6 billion KRW) in a Series F equity round of funding. This substantial funding is aimed at propelling the company’s business and product innovation, as well as bolstering its recruitment efforts.
Key Takeaway
Myrealtrip secures $56.7 million in funding to fuel its business expansion and product innovation amidst the rebound of the global tourism industry.
Post-Pandemic Tourism Industry Gains Momentum
According to a recent UN World Tourism Organization report, global tourism has surged back to pre-pandemic levels in the third quarter of 2023. This resurgence has provided a significant impetus for travel tech companies to gear up for rapid business expansion.
Myrealtrip’s Ambitious Plans
Myrealtrip, which boasts 7.9 million users in South Korea, is on a mission to establish itself as a super app in the travel industry. The company offers a comprehensive range of travel booking services, including flights, accommodations, activities, and local transportation.
Strategic Partnerships and Growth
The company has forged partnerships with approximately 2,000 travel agencies, hotel platforms, and airfare comparison service providers such as Expedia, Agoda, and Viator. These collaborations enable travelers to seamlessly book a wide array of services, including tours, activities, restaurants, local transportation, hotels, and Airbnb-like accommodations on a global scale.
Impressive Financial Performance
Myrealtrip’s valuation has tripled since its previous equity funding round (Series D) in 2020. The company’s revenue has surged threefold since 2022, with a gross merchandise volume (GMV) of $746 million (1 trillion KRW) in 2023. Looking ahead, Myrealtrip aims to double its GMV and generate an EBITDA of $12 million this year.
Overcoming Pandemic Challenges
Despite facing challenges during the pandemic, Myrealtrip managed to navigate through by prioritizing domestic tourism and introducing new features such as group trips and business travel. The company’s resilience was further demonstrated through strategic acquisitions and investments, including the acquisition of Startrip in 2022, aimed at catering to the influx of foreign tourists visiting South Korea post-pandemic.
Focus on Technology and Future Plans
Technology will play a pivotal role in Myrealtrip’s long-term success, particularly in attracting inbound and outbound travel users, as well as foreign tourists. The company plans to invest more in technology, including AI capabilities, in preparation for its anticipated initial public offering in 2026.
Strong Investor Backing
The Series F funding round was co-led by returning investors BlueRun Ventures Korea and IMM Investment, bringing Myrealtrip’s total equity raised to approximately $113 million (150 billion KRW) since its inception in 2012. New investors, including Korelya Capital and Vanderbilt University’s endowment fund, along with previous backers, also participated in this round.
With a workforce of 300 employees, Myrealtrip is poised to leverage its latest funding to capitalize on the resurgence of the travel industry and further solidify its position in the global market.
