Traxo, the Dallas company behind a travel organizer service, acknowledged today that it has raised $4.2 million from investors, led by the venture capital firm Advantage Capital Partners.
Silver Creek Ventures and Thayer Ventures also participated.
The startup did not release terms of the deal. But it said it planned to use the capital to invest in product development, business-to-business capabilities, and overseas expansion.
Damon Rawie, managing director of Advantage Capital Partners, Michael Segrest, general partner of Silver Creek Ventures, and Jeffery Jackson, managing director of Thayer Ventures, are joining Traxo's board.
Traxo recently inked a travel expense management partnership with SAP’s Cloud for Travel, launched an app for iOS devices, integrated a weather prediction service, expanded its frequent flyer management capabilities with the passive aggregation of itineraries and points from loyalty programs after its acquisition of GoMiles, and unveiled a review platform for hotels and flights that verifies user authenticity.
Rawie said in a statement:
“We have been tracking Traxo’s progress for some time, and have been impressed with their recent momentum. We are delighted to provide growth capital for a pioneering travel venture that is driving economic development right here in Texas."
Some analysts, however, are skeptical that a startup can sustain growth unless it becomes better at growth hacking, which is when marketing is built in to the product engineering.
Launched in 2009, Traxo is not in the lead position in its competitor set, which includes TripIt, TripCase, WorldMate, and other travel organizer products.
This is the third investment by venture capital firm Thayer's II fund in the past month, following one in Liftopia and one in tripBAM.