Jungle Ventures secures TravelMob exit

This was the rationale behind NASDAQ-listed vacation rental site HomeAway's acquisition of a 63% stake in Singapore-based start-up TravelMob last week. It facilitated an exit for VC backers Jungle Ventures, Accel Partners, New Zealand Venture Investment Fund and Sparkbox Ventures.

Increased travel within the region means increased demand for ancillary services. The TravelMob concept is simple - travelers looking for holiday accommodation are matched with property owners, or hosts, with space to offer. The format, arguably pioneered by US site Airbnb in 2008, has spawned a host of similar sites offering services ranging from casual room rentals (Couchsurfing) to arranging luxury retreats (HomeAway).

Jungle Ventures backed TravelMob last September, leading a $1 million seed round. "We had been looking at this space for while, since late 2011, but there were few companies around then," says Amit Anand, the VC firm's co-founder. "It was exactly this kind of growth, in the intra-Asia Pacific traveler segment, where we saw an opportunity."

Launched last year, TravelMob features over 14,000 short-term rental listings which run the whole gambit of accommodation offerings from luxury villas and urban apartments to houseboats and even some shared spaces. By the time Jungle Ventures invested, it already had operations in Singapore, Hong Kong and Indonesia.

"We focus on identifying and cultivating regional category leaders - and TravelMob was the right fit," says Anand. "What was also attractive about TravelMob was the experience of the team; they were pretty seasoned entrepreneurs and we liked the way they were thinking about scaling the business across the region."

The rapid growth of this segment, however, has also meant it has become very fragmented, setting the stage for larger players to seek inorganic growth opportunities and paving exits for early investors. By acquiring TravelMob - and investing an extra $2 million into the company - HomeAway plans to expand its presence in Asia and compete directly with Airbnb.

HomeAway also participated in two rounds of funding for Tujia.com, China's first online vacation homes rental service, alongside a group of venture capital firms.

"There will be some level of consolidation," says Anand. "Travel is a business where the margins are pretty thin but there is also phenomenal amount of volume. On the other hand I still see new models coming out for this type of business - we continue to be excited."

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• Topics
• Exits
• Venture
• Consumer
• Southeast Asia
• Jungle Ventures
• Southeast Asia
• Consumer
• Exit
• Trade sale