Barcelona-based startup TravelPerk, which helps automate corporate travel and expenses, has raised $104 million in fresh funding from Japanese tech investing giant SoftBank and a flood of other names, to invest in artificial intelligence development and new products.
The company said Tuesday that it raised the cash in a new equity round led by SoftBank Vision Fund 2 and backed by existing investors Kinnevik and Felix Capital. TravelPerk said it plans to use the money to invest in continued company growth and product expansion.
TravelPerk primarily uses AI technologies like machine learning and neural networks in the back end to help automate a lot of the manual tasks involved in corporate travel — for example, connecting users with the best prices for flights and accommodation.
“Traditionally, if you look at legacy players, like American Express or Expedia, or holiday travel sites, most of the work is done manually by travel agents,” Avi Meir, CEO and co-founder of TravelPerk, told CNBC.
“This is one of the reasons why you don’t really see huge success at scale with travel, because technology was not used, and technology is how you scale today.”
SoftBank invested $70 million in TravelPerk’s latest round, which the company said was an extension of its “D-1” funding round. The fundraising round shows SoftBank is placing a major bet on a company driving disruption in corporate travel through new technologies, such as AI — which has seen significant buzz since the November 2022 launch of OpenAI’s ChatGPT.
The latest fundraising round lifts TravelPerk’s valuation to $1.4 billion, a touch above the $1.3 billion at which TravelPerk was assessed during its previous cash raise a year ago.
An “upround,” where a private startup pulls in funds at a higher share price, became a rare event over the last year or two amid sky-high interest rates.
Investing in AI that’s not for ‘show’
Meir poured cold water on some of the buzz around AI, saying that a lot of the experimentation he sees with generative AI tools like ChatGPT seems like more of a “show” than a practical adoption of AI for improving cumbersome problems in travel business.
He said TravelPerk is running on a far leaner operating model than incumbents in the legacy travel agency market. Whereas many travel agents operate on low single digits gross margins, Meir says that TravelPerk’s profit margin stood at 60% last year.
“What we did in 2023 is, with the use of AI, basically automated a lot of these kinds of back office manual processes,” Meir told CNBC. “It’s less sexy than having a chat bot, but it’s worth it,” said Meir.
2023 a year of ‘hyper growth’
TravelPerk also intends to use the fresh cash to fuel an acceleration of its gross profit, which grew 90% in full-year 2023 through automation and AI. TravelPerk made annualized revenues of $100 million in 2023, according to its co-founder and CEO Avi Meir.
TravelPerk had a tough time over the Covid-19 pandemic, when travel of all kinds, not just corporate trips, ground to a halt to stem the spread of the virus.
The company has since benefited from a resurgence in international travel, as vaccine rollouts enabled public health authorities to lift travel restrictions around the globe.
“Not only are we out of the pandemic, we’re back to hyper growth. 2023 was our best year ever. We grew revenue more than 70% year-over-year, on a pretty large base,” Meir told CNBC.
TravelPerk competes with American Express, BCD Travel, SAP Concur and Navan in the corporate travel management space.
Will IPO when ‘ready’
Post-Covid-19, Meir says, TravelPerk’s growth has been on a tear. He sees the firm reaching profitability on a monthly basis by the end of 2024 and quarterly profitability by the end of 2025.
TravelPerk has continued hiring, rather than laying off staff, as several other travel tech firms have done. The company brought on 50% of its staff in the last two years, according to its CEO.
Meir said that TravelPerk has no immediate plans to go public, as his intention is to build a company that will be around in 100 years. However, an initial public offering is something the company would be “ready” to do if and when it approaches that event, he added.
TravelPerk hired a new chief financial officer, Roy Hefer, last year, who has experience in taking companies public and was part of two tech IPOs in the U.S.
The Trump administration has floated a plan to trim about $6 billion from the budget of NASA, while allocating $1 billion of remaining funds to Mars-focused initiatives, aligning with an ambition long held by Elon Musk and his rocket maker SpaceX.
A copy of the discretionary budget posted to the NASA website on Friday said that the change focuses NASA’s funding on “beating China back to the Moon and on putting the first human on Mars.”
NASA also said it will need to “streamline” its workforce, information technology services, NASA Center operations, facility maintenance, and construction and environmental compliance activities, and terminate multiple “unaffordable” missions, while reducing scientific missions for the sake of “fiscal responsibility.”
Janet Petro, NASA’s acting administrator, said in an agency-wide email on Friday that the proposed lean budget, which would cut about 25% of the space agency’s funding, “reflects the administration’s support for our mission and sets the stage for our next great achievements.”
Petro urged NASA employees to “persevere, stay resilient, and lean into the discipline it takes to do things that have never been done before — especially in a constrained environment,” according to the memo, which was obtained by CNBC. She acknowledged the budget would “require tough choices,” and that some of NASA’s “activities will wind down.”
The document on NASA’s website said it’s allocating more than $7 billion for moon exploration and “introducing $1 billion in new investments for Mars-focused programs.”
SpaceX, which is already among the largest NASA and Department of Defense contractors, has long sought to launch a manned mission to Mars. The company says on its website that its massive Starship rocket is designed to “carry both crew and cargo to Earth orbit, the Moon, Mars and beyond.”
Musk, who is the founder and CEO of SpaceX, has a central role in President Donald Trump’s administration, leading an effort to slash the size, spending and capacity of the federal government, and influencing regulatory changes through the Department of Government Efficiency (DOGE).
Musk, who frequently makes aggressive and incorrect projections for his companies, said in 2020 that he was “highly confident” that SpaceX would land humans on Mars by 2026.
Petro highlighted in her memo that under the discretionary budget, NASA would retire the SLS (Space Launch System) rocket, the Orion spacecraft and Gateway programs.
It would also put an end to its green aviation spending and to its Mars Sample Return (MSR) Program, which sought to use rockets and robotic systems to “collect and send samples of Martian rocks, soils and atmosphere back to Earth for detailed chemical and physical analysis,” according to a website for NASA’s Jet Propulsion Laboratory.
Some of the biggest reductions at NASA, should the budget get approved, would hit the space agency’s space science, Earth science and mission support divisions.
Petro didn’t name any specific aerospace and defense contractors in her agency-wide email. However SpaceX, ULA and Jeff Bezos’ Blue Origin are positioned to continue to conduct launches in the absence of the SLS. Boeing is currently the prime contractor leading the SLS program.
“This is far from the first time NASA has been asked to adapt, and your ability to deliver, even under pressure, is what sets NASA apart,” she wrote.
President Trump’s nominee to lead NASA, tech entrepreneur Jared Isaacman, still has to be approved by the U.S. Senate. His nomination was advanced out of the Senate Commerce Committee on Wednesday.
Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration’s new rules on low-value shipments took effect Friday.
In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.
Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It’s been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.
The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.
Read more CNBC tech news
The end of de minimis, as well as Trump’s new 145% tariffs on China, has forced Temu to raise prices, suspend its aggressive online advertising push and now alter the selection of goods available to American shoppers to circumvent higher levies.
A Temu spokesperson confirmed to CNBC that all sales in the U.S. are now handled by local sellers and said they are fulfilled “from within the country.” Temu said pricing for U.S. shoppers “remains unchanged.”
“Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said. “The move is designed to help local merchants reach more customers and grow their businesses.”
Before the change, shoppers who attempted to purchase Temu products shipped from China were confronted with “import charges” of between 130% and 150%. The fees often cost more than the individual item and more than doubled the price of many orders.
Temu advertises that local products have “no import charges” and “no extra charges upon delivery.”
The company, which is owned by Chinese e-commerce giant PDD Holdings, has gradually built up its inventory in the U.S. over the past year in anticipation of escalating trade tensions and the removal of de minimis.
Shein, which has also benefited from the loophole, moved to raise prices last week. The fast-fashion retailer added a banner at checkout that says, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”
Many third-party sellers on Amazon rely on Chinese manufacturers to source or assemble their products. The company’s Temu competitor, called Amazon Haul, has relied on de minimis to ship products priced at $20 or less directly from China to the U.S.
Amazon said Tuesday following a dustup with the White House that had it considered showing tariff-related costs on Haul products ahead of the de minimis cutoff but that it has since scrapped those plans.
Prior to Trump’s second term in office, the Biden administration had also looked to curtail the provision. Critics of the de minimis provision argue that it harms American businesses and that it facilitates shipments of fentanyl and other illicit substances because, they say, the packages are less likely to be inspected by customs agents.
Jeff Bezos, founder and executive chairman of Amazon and owner of The Washington Post, takes the stage during The New York Times’ annual DealBook Summit, at Jazz at Lincoln Center in New York City, Dec. 4, 2024.
Michael M. Santiago | Getty Images
Amazon founder Jeff Bezos plans to sell up to 25 million shares in the company over the next year, according to a financial filing on Friday.
Bezos, who stepped down as CEO in 2021 but remains Amazon’s top shareholder, is selling the shares as part of a trading plan adopted on March 4, the filing states. The stake would be worth about $4.8 billion at the current price.
The disclosure follows Amazon’s first-quarter earnings report late Thursday. While profit and revenue topped estimates, the company’s forecast for operating income in the current quarter came in below Wall Street’s expectations.
The results show that Amazon is bracing for uncertainty related to President Donald Trump’s sweeping new tariffs. The company landed in the crosshairs of the White House this week over a report that Amazon planned to show shoppers the cost of the tariffs. Trump personally called Bezos to complain, and Amazon clarified that no such change was coming.
Bezos previously offloaded about $13.5 billion worth of Amazon shares last year, marking his first sale of company stock since 2021.
Since handing over the Amazon CEO role to Andy Jassy, Bezos has spent more of his time on his space exploration company, Blue Origin, and his $10 billion climate and biodiversity fund. He’s used Amazon share sales to help fund Blue Origin, as well as the Day One Fund, which he launched in September 2018 to provide education in low-income communities and combat homelessness.