Sequoia leads $30m Series B for Hong Kong's Klook
Sequoia Capital China has led a $30 million Series B funding round for Hong Kong-based travel services company Klook.
Existing backers including Matrix Partners and Welight Capital also participated. The capital will be used to expand the company’s reach beyond Asia to meet a growing demand for long-haul travel related to increased spending power in the region.
"Scale advantage is a prominent element in the travel industry, especially within the highly fragmented in-destination sector," Neil Shen, Sequoia Capital China’s founding and managing partner, said in a statement. "With combined strengths in transaction and community, Klook has become a proven leader in Asia.”
Founded in 2014, Klook’s online platform allows users to book tours and other travel activities at discounted prices. The service covers 80 destinations globally and facilitates access to more than 10,000 attractions, tours and activities. The company claims to have helped customers book five million trips last year. It has eight offices in Asia.
Matrix led a $5 million round for the company in 2015 alongside China Growth Capital and Francis Leung, a senior advisor for Asia at CVC Capital Partners. The investment came five months after a $1.5 million seed round from Xiaoguang Wu, a senior adviser at Tencent Holdings.
Investor interest in Asian online travel services has been supported by projections that the regional market is on track to be the world’s largest. EMarketer estimates that annual digital travel sales in Asia Pacific will amount to more than $200 billion this year, surpassing the North American total.
Recent activity in this space includes a $150 million investment in trip booking site operator Shanghai Joyu Culture Communication and the $4.4 billion privatization of Chinese travel site Qunar, led by tourism-focused PE firm Ocean Link. IDG Capital and Sequoia have also formed a tourism investment fund, working in conjunction with China CYTS Tours Holdings.
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