Travel Startup Funding and M&A Trends Show Mixed Q1 2025 Outlook

After signs of recovery in 2024, travel startup funding slowed in Q1 2025, raising under $1 billion—down from $1.6 billion last year. According to Phocuswright’s Mike Coletta, this marks the slowest start in recent years, with Series A rounds particularly weak.

Still, key deals emerged. Corporate travel platform TravelPerk secured $200 million in Series E funding and acquired expense tech firm Yokoy. Corporate events startup Naboo raised €20 million, while Klook drew $100 million to expand its experiences platform in Asia Pacific. Multi-day tour provider Exoticca raised €25 million, and HolaCamp secured €10 million to grow its campsite and experience offerings.

Hotel tech also attracted investment. Mews raised $75 million to grow in the U.S. and Europe, and RoomPriceGenie matched that figure for global expansion. Kenya’s Purple Elephant Ventures raised $4.5 million to boost Africa tourism, while loyalty and engagement platform Superlogic raised $13.7 million.

Looking ahead, Coletta sees “mixed signals.” Generative AI may reduce startup costs while increasing competition—potentially driving future investment despite leaner operating models.

Q1 also saw strong M&A activity. American Express announced plans to acquire expense management firm Center. Flywire bought Sertifi for $330 million. Software M&A was especially active, with deals including DerbySoft’s acquisition of Arise and Mews’ acquisition of Clarity.

Consumer-focused deals included Mindtrip’s acquisition of Thatch and Dertour Group’s acquisition of Hotelplan. Vacasa also accepted a buyout offer from Casago.

Analysts expect M&A activity to outpace 2024, driven by aging business owners, strong travel revenue, and a desire for competitive tech. Software M&A is forecast to lead the surge.

Tags: phocuswire

Travel Startup Funding and M&A Trends Show Mixed Q1 2025 Outlook

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