Online booking company raises $40 million in new funding round

folarin okunola

February 5, 2016 2:36 PM

Apart from the funding, the company has also entered into a strategic partnership with MTN, Nigeria’s largest mobile telecommunications provider which has a subscriber base of more than 40 million locally.

Travelstart

Internet travel booking company, Travelstart, has announced an investment of $40M led by Amadeus Capital Partners (London), for its growth in Nigeria and to solidify the company’s position as the biggest OTA player on the continent.

Apart from the funding, the company has also entered into a strategic partnership with MTN, Nigeria’s largest mobile telecommunications provider which has a subscriber base of more than 40 million locally.

Travelstart hopes the move will strengthen its position in the local market with robust anti-fraud systems and procedures, while the agreement with MTN will give OTA access to multiple payment points throughout Nigeria.

“Since our launch in Nigeria in 2012 we have been positively surprised by Nigerians’ passion for everything technology and this gives us confidence in the future. We have enjoyed triple digit growth in Nigeria every year and this will continue for a while. The investment from Amadeus Capital and the MTN partnership is a fantastic fit for the Nigerian market who will get access via mobile to better fares and more payment methods,” said Stephan Ekbergh, Travelstart founder.

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Nigeria CommunicationsWeek reports that Andrea Traversone, Investment Partner at Amadeus Capital, will join Travelstart's newly formed board of directors.

“The market potential for Travelstart is huge and the company is already a tour de force in emerging markets. They are one of the most profitable e-commerce companies on the African continent and with this new round of funding Travelstart will be able to fast-track its already rapid growth. We’re excited to spearhead this round and to see the company’s continued growth and success,” said Traversone.

Increasing Internet connectivity, a growing middle-class with spending power, and a booming online shopping landscape highlight Nigeria’s growing reputation as a promising market for brands that seek to expand through e-commerce.

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