In less than a year, TripActions has secured a second massive
funding round – this time $275 million in Series F growth funding.
The round was led by Greenoaks
Capital with participation from prior investors Elad Gil, Base Partners and all
key existing financial investors and values TripActions at $7.25 billion on a
The funding comes less than
nine months after TripActions' Series E round of $155 million in January. The travel management company's total funding to date is nearly
Is an IPO coming soon for the
six-year-old company? Michael Sindicich, general manager of TripActions Liquid,
the company’s payment and expense management solution, says while an IPO would
be a “natural fundraising opportunity and another milestone in our growth,” it
is not planned for the near future.
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“We’ve got quite a lot of cash.
We’re making great revenue. We are not in any rush to take the company public
at this time,” Sindicich says. The vote of confidence from investors, he says, confirms
TripActions’ belief that travel and expense management is “ripe for a tech
Despite the global impact of COVID-19
on travel, TripActions says it has now exceeded pre-pandemic levels in terms of
bookings and revenue and has more than doubled its aggregate travel budget
under management from February 2020 through the end of July this year.
The gains are due in part to a
focus on acquiring new enterprise customers, targeted with the launch of TripActions
Enterprise Edition in September 2020. Clients include Heineken, Crate &
Barrel, Snowflake, Thomson Reuters and Adobe.
“We were there for these
customers, they were switching from legacy travel agencies and booking tools,
legacy expense platforms, because we were innovating, we were supporting, we
were adapting to the way the new world would operate moving forward and that
gave them a lot of confidence to actually make a change,” Sindicich says.
Also adding fuel to TripActions' growth in the last 18 months: the launch of Liquid in February 2020, first as
a payment solution and then in October 2020 adding expense
Sindicich says transaction
volume is similar for Liquid as for core travel, and more than 90% of the new
companies TripActions is bringing onboard use its full suite of solutions for
corporate travel, expense, spend and payment management.
“Seventy-percent of expenses
happen while employees are on trips,” he says.
learning about the power of the end-to-end solution. We built Liquid as a separate
team in the beginning... and are now seeing that both platforms together, it’s
a one-plus-one-equals-three type of situation.”
Along with continuing to develop
these products, TripActions will accelerate development of Lemonade, its personal
travel booking solution that launched in October 2020. Lemonade gives employees
at TripActions’ client companies access to negotiated rates and exclusive
deals, notifications about COVID requirements and around-the-clock support for
their leisure trips.
The company is also continuing
to develop TripActions Team Travel, a self-serve solution that launched in June
to facilitate gatherings of distributed employees. Earlier this month it added
support for meetings and events to Team Travel, leveraging the capabilities it gained
with its acquisition
of Reed & Mackay in May.
TripActions will also add staff globally, expand its efforts in
Europe, the Middle East and Africa – Europe now represents 30% of TripActions’
business - and, says Sindicich, continue to look for merger and acquisition
“We’re always looking for companies that would make sense
to acquire and work with and add to the portfolio so this could be another deployment
of this capital as well,” he says.
“There’s not a prospect we are announcing or have in mind
right now, but it would be natural for us to also look at other opportunities
as well since we see Reed & Mackay is working so well for us.”