The year 2025 has seen a slow start in travel industry funding, with startups raising approximately $400 million so far. This figure pales in comparison to last year’s numbers, where funding had more than doubled by this time. However, recent activity suggests that investment in corporate travel and innovative transportation solutions, such as flying taxis, is picking up.
Over the past three weeks, seven travel startups have collectively secured nearly $300 million in funding. The most significant contribution came from TravelPerk, which raised $200 million in an oversubscribed Series E round, pushing its valuation to $2.7 billion. Other startups are also gaining traction, indicating that private equity firms are still keen on identifying and supporting the next major travel tech platforms.
TravelPerk Secures $200 Million
Barcelona-based TravelPerk has become a dominant player in corporate travel solutions, particularly catering to small and mid-sized businesses in the U.S. and Europe. The company’s platform allows clients to book and manage their travel expenses efficiently.
With its recent funding, TravelPerk has now raised over $700 million, demonstrating strong investor confidence. The latest investment round has significantly boosted its valuation from $1.4 billion to $2.7 billion, positioning the company for potential expansion and technological advancements.
Other Travel Startups Gaining Momentum
Apart from TravelPerk, several other travel startups have attracted funding, although most of these rounds have been smaller, focusing on early-stage growth. Series A, B, and C rounds continue to be tight, but investors are optimistic about the sector’s future.
Notable Funding Rounds in the Past Three Weeks:
- Flying Taxi Startups
- Several companies working on electric vertical takeoff and landing (eVTOL) aircraft have raised capital. These startups are at the forefront of urban mobility innovation, promising to revolutionize short-distance travel in congested cities.
- Corporate Travel Tech Firms
- In addition to TravelPerk, other companies providing corporate travel management solutions have secured early-stage funding, signaling continued interest in improving business travel efficiency.
- Sustainable Travel Platforms
- A few startups focusing on eco-friendly travel solutions have also garnered investor attention, reflecting the growing demand for sustainability in the travel sector.
Investment Trends in Travel Startups
Although the first quarter of 2025 has started slower compared to the previous year, the recent influx of nearly $300 million suggests that investors are selectively placing bets on companies with high growth potential. Private equity firms are particularly interested in travel tech platforms, which could mean more significant deals later in the year.
The corporate travel industry is experiencing a wave of digital transformation, with automation and artificial intelligence playing a crucial role in streamlining travel management. Meanwhile, flying taxis and other futuristic transportation methods are attracting funding as companies seek to redefine urban mobility.
As the year progresses, the travel sector is likely to witness more substantial funding rounds, particularly as startups continue to demonstrate resilience and innovation. With companies like TravelPerk leading the way, the future of corporate travel and next-generation mobility looks promising.
