HK Startup Klook Travel Secures US$5M Series A Funding
Klook Travel (“Klook”), Asia’s leading platform for booking attractions and travel activities, has secured US$5 million in Series A funding led by Matrix Partners, along with China Growth Capital and Francis Leung Pak To. The financing follows swiftly on the back of a US$1.5 million seed capital raised earlier this year led by Wu Xiaoguang of Tencent.
Within a year, Klook has grown to become Asia’s leading platform for booking attractions and travel activities. Klook is a leader in the mobile travel booking segment in Asia, having been featured over 80 times by Apple’s AppStore since Klook Mobile’s launch in May 2015. Klook has over 500,000 users across Asia, serving thousands of travelers a day. In addition to having established direct collaboration with all major attractions in Asia, Klook has also formed strategic partnerships with many leading brands such as Asia Miles and DBS to bring a holistic travel and lifestyle experience to its users.
Proceeds from this round of funding will be used to expand the business, with a focus on increasing Klook’s portfolio of destinations and activities, and enhancing technology. Additionally, funds will be used to broaden existing marketing efforts to further increase Klook’s branding and to expand marketing campaigns with partners.
Wilfred Fan and Shuren Hu have joined Klook as strategic advisors. Mr. Fan is Vice President and Managing Director of Agoda, responsible for strategic development and business operations in the North Asia region. Mr. Hu is the former Vice Chairman of the Planning & Financial Department of China National Tourism Administration and has deep industry expertise in China’s tourism industry. Both advisors are industry veterans who bring significant value in helping Klook to scale rapidly in Asia.
“Travel eCommerce is particularly prone to winner-takes-all market dynamics arising from network effects, which leads to significant cost advantages. Priceline and Expedia’s stranglehold of the flights and hotel sector is an example of such market dynamics. Klook has emerged as a clear market leader in the travel activities space, way ahead of peers in this region. The business has laid the right foundation for it to take on the next phase of growth, and we are excited to be part of this.” – Wang Huadong, Partner at Matrix Partners. ￼Industry experts estimate that 50% of global passenger traffic will be within or from APAC by 2030, up from 37% today, with China as one of the main growth drivers. The addressable market opportunity is ￼significant and Klook is going after it aggressively.
“Klook has immense market potential with its ability to serve both the Chinese and English speaking markets. The Klook team is one of the most outstanding we’ve encountered – combining global backgrounds with strong local expertise and execution skills. The company has demonstrated a proven track record in a short period of time and will be able to accelerate further growth with this round of funding.” – Wang Daoping, Partner at China Growth Capital.
“5 out of the top 10 most visited cities in the world are in Asia – Hong Kong, Singapore, Seoul, Kuala Lumpur, Bangkok. As a Hong Kong based startup, Klook is at the epicentre of Asia travel, and is well- ￼positioned to leverage its geographical advantage to transform into a global travel brand.” – Ethan Lin, Klook co-founder.
￼Klook already has plans to capitalize on its momentum to strengthen its leading position in Asia. The ￼company is in the process of setting up an office in Singapore to be the regional headquarters for ￼Southeast Asia, and is looking into establishing on-the-ground presence in other countries going forward.
“We are proud to have attracted an A-list of investors and veteran advisors with core expertise ranging from the travel industry, eCommerce to finance. Participation from renowned professional VCs in our Series A is a strong vote of confidence for Klook’s team, and we are excited to work closely with our investors to roll out our pan-Asia strategy.” – Eric Gnock Fah, Klook co-founder.