India: Mystifly raises $3.3m in pre-Series B round led by Japan’s Recruit Holdings

Photo by Josh Appel on Unsplash

Mystifly, which offers payment processing and airline inventory management software to both online and offline travel aggregators, has raised $3.3 million in its pre-Series B round led by Japan-based Recruit Holdings Co., Ltd.

The ten-year-old, Bengaluru-based startup which offers its software to businesses using a SaaS model plans to raise an additional $30 million in equity financing in a Series B round within the next few quarters, Mystifly’s co-founder Rajeev Kumar said in an interview.

The startup also has an office in Singapore, with around 140 employees.

Currently, Mystifly offers SaaS solutions to automate airline ticketing distribution, fulfilment and payments technology for both offline travel agents and online travel aggregators (OTAs).

Airline ticketing and fulfilment is a cumbersome process, especially for OTAs and offline agents who work with budget carriers. Airlines such as Indigo, GoAir operate with OTAs using a wallet model for bookings. OTAs deposit a chunk of cash in the airlines’ wallet, and process air tickets on the basis of this outstanding balance with each operator.

Kumar said both refunds and payment settlements for successful bookings are credited into the travel agent’s or the OTA’s account typically after every 20 days. Mystifly’s product helps shorten the payment settlement cycle to within 24 hours.

“We work with a combination of small and large airlines globally and we also wholesale supply networks who provide us with airfare inventory in bulk. But today as we grow, we are partnering directly with airline operators instead, and enabling a far higher retailing capability for airline brands with our tools, when compared to their existing capability,” Kumar said.

Kumar said Mystifly reported profits in the last fiscal, and that the startup initially didn’t raise any external funds in the first six years of operations. Mystifly’s previous fundraise was reported in 2016 when it had raised $5 million from Recruit Holdings group.

“Ever since out first fundraising in 2016, we have been a profitable business and while we scaled we didn’t do multiple fundraisers and focused only on profitable growth. At the time of the first funding we were doing just 800 transactions a day, we have now scaled that to around 12,500 transactions a day,”he added.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.