Klook, Asia’s leading platform for experiences and travel services, announced Thursday, Dec. 7, that it has successfully completed a $210-million financing round, participated in by international and regional funders including, SM Investment SG Holdings, the Philippines' first investment firm to invest in Klook.
The equity round led by Bessemer Venture Partners aims to support its business growth and financial stability through product innovation, social and digital marketing scaling program, and AI integration, the company said in a statement.
Also participating in the funding round are BPEA EQT, Asia investment funds Atinum Investment and Golden Vision Capital, Krungsri Finnovate (under Bank of Ayudhya), and Kasikornbank Financial Conglomerat.
The round also includes bank facilities from Citi, J.P. Morgan, and HSBC, according to Klook.
Klook said that the fund will be strategically allocated to product innovation, expanding its city pass offerings to enhance traveler convenience and savings; scaling social and digital marketing through the Klook Kreator program, driving conversions with authentic, social, user-generated content; and advancing innovation through continuous AI integration.
Its recent collaboration with Google Cloud will integrate Generative AI across the platform, covering automated translations, content generation, and customer service chatbot.
The company will also collaborate with the new strategic investors in the region, to increase market share and boost growth, tapping into the fast-growing middle class in Southeast Asia.
Klook noted that 2023 marks the first year, since the pandemic, of travel recovery for many Asian markets, with a notable rebound in tourism figures and a gradual recovery in flight capacities.
Despite this early stage in market recovery, Klook has demonstrated remarkable business success, surpassing previous milestones with a threefold increase compared to 2019 and boasting an annualized gross booking value of $3 billion. Notably, the company also achieved overall profitability for the first time earlier this year.
Klook CEO and Co-Founder Ethan Lin credited this accomplishment to the collective efforts of the team in establishing the groundwork for the post-COVID era of travel.
“During the pandemic, we doubled down on our resources in merchant digitization and the expansion of our supply network, including car rentals and outdoor experiences. This positions us strongly to capture new travel trends coming out of the pandemic,” he said.
The company's success is further underscored by its increasing brand strength, strategically building on and leveraging its app-first approach to both acquire and retain customers, with over 80 percent of bookings made through mobile today.
Impressively, the influx of new customers acquired this year more than doubled that of 2019, while repeat customers contributed to over half of the total bookings, demonstrating the sustained customer loyalty fostered by the platform.
"Leveraging strong business fundamentals that led to significant growth in revenue and profit this year, including a threefold increase in productivity (revenue per headcount), we are set for a new phase of sustainable expansion,” Lin shared.
He added that “with Asia in the early stages of post-COVID recovery, upcoming global events like the Paris Olympics 2024 and Osaka World Expo 2025, along with rising expenditures and digital adoption, the industry outlook in Asia is exceptionally positive."
In the Philippines, Klook’s total bookings surpassed 2019 pre pandemic year-to-date (YTD) numbers with a growth rate of 55 percent.
In terms of revenue, Klook is also seeing 178 percent growth rate for the Philippines, as well as for Hong Kong and Japan, by 29 percent and 68 percent, respectively for this year compared to 2019.
Klook Philippines said that it continues to strengthen strategic partnerships with Grab, Lazada, Metrobank, Bank of the Philippine Islands and BDO Unibank Inc. in order to reach a wider audience and provide an easy, seamless way for travelers to discover and book activities.
The global travel industry is projected to soar to a staggering $15.5 trillion by 2033, with Asia Pacific leading the way as the fastest-growing region, according to Klook.
With a compound annual growth rate (CAGR) of 11 percent in the Asia Pacific from 2023 to 2028, almost doubling that of North America and Europe, this dynamic region is set to capture a larger share of the global travel market, driven by a burgeoning middle class, increased consumer spending, and a growing appetite for unique experiences.
With this, Klook remains focused on catering to the increasing demand for immersive travel among Asian customers and showcasing the best of Asia to inbound travelers.
“We are pioneering a transformative era of travel, catering to a new generation of more digitally-savvy travelers with bigger and bolder appetites for unique experiences," Klook COO and Co-Founder Eric Gnock Fah said.
"Our goal is to empower travelers to explore the world effortlessly through the Klook app, a one-stop platform that seamlessly connects them to a comprehensive range of in-destination services, encompassing immersive experiences and convenient ground transportation,” he added.