Traveloka nears fundraising at lower valuation

Traveloka, South-east Asia's biggest online travel start-up, is close to raising fresh funds at a private-market valuation of about US$2.75 billion (S$3.84 billion) - roughly 17 per cent less than its most recent fundraising, according to sources familiar with the matter.

The Jakarta-based firm is in advanced negotiations with new strategic investors such as Siam Commercial Bank and Richard Li's FWD Group, as well as existing backers GIC and East Ventures, to secure about US$250 million, the sources said.

The primary fundraising will be at a US$2.75 billion valuation, while a secondary sale will be at US$2.4 billion, one of the sources said. Traveloka counts Expedia Group and JD.com among its existing backers.

Terms of the fundraising could still change, they said.

A Traveloka representative declined to comment. The company, which has had its business hammered by the fallout from Covid-19, is one of the first unicorns in South-east Asia to experience a down round - raising funds at a lower valuation than the previous funding round.

It reflects the sharp drop in business after lockdown orders halted flights and travel.

Since the outbreak, the company has cut an unspecified number of positions, including about 80 jobs in Singapore in April.

Some Traveloka investors are betting on the travel industry's eventual recovery. In Vietnam, with few infections, domestic travel has restarted.

BLOOMBERG