Indonesia’s traveltech unicorn Traveloka said to have acquired three regional rivals

Employees work in front of computers at the office of Traveloka Indonesia PT in Jakarta, Indonesia, on Wednesday, Oct. 11, 2017. Photographer: Graham Couch/Bloomberg

Indonesian online travel unicorn Traveloka has acquired local competitor PegiPegi and two other regional counterparts for $66.8 million, according to a Daily Social report.

The two other traveltech startups are Vietnam’s MyTour and Philippine startup TravelBook. All three are subsidiaries of Japanese tech company Recruit Holdings.

In an investor relations announcement dated January 5 this year, Recruit Holdings said it had decided to transfer its entire holdings in its subsidiaries to Singapore-based entity Jet Tech Innovation Ventures Pte. Ltd.

The Daily Social report claims that Jet Tech sealed the deal on behalf of Traveloka after the tech site found linkages between the two companies. One of them is the dual position held by Jet Tech director Hendrik Susanto, who also holds the position of chief strategy and investment officer at Traveloka.

When asked by DEALSTREETASIA for confirmation on the matter, Traveloka said it cannot comment on rumours or speculations in the market.

In its explanation of its decision to sell its shares in the three startups, Recruit Holdings said the move was done “in consideration of the competitive environment of the market surrounding online travel agency services in the ASEAN region”.

According to a report by Google and Temasek Holdings, online travel in Southeast Asia reached $26.6 billion in 2017 and is projected to increase to $76.6 billion by 2025.

Traveloka, which has operations in Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam, is the market leader in the region. Last year, the company raised $350 million from Expedia and another $150 million from JD.com, East Ventures, Hillhouse Capital and Sequoia Capital. The financing was said to have valued the Indonesian firm at around $2 billion.

Traveloka is reportedly in talks to raise a $400-million round led by Singapore’s sovereign wealth fund GIC, doubling its valuation to $4.1 billion. It is said to be looking to expand its business beyond airline tickets and hotel bookings to activities such as concerts and amusement parks.

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