Travel Startups Raise $245 Million

It’s been another relatively slow three weeks for travel tech funding. That’s been a pattern so far this year, following a year that broke records in several areas. 

Ten travel startups raised $245 million over the past three weeks. 

Electra is one of only a few electric plane startups to raise money this year. Most of the other fundraises over the last three weeks were less than $15 million. They were mostly startups in areas that are continuing to get funding — tech for hotels, business travel, and travel selling — even if many of the deals are small these days.

Electra: $115 Million

Electra, which is developing a hybrid-electric plane, has raised $115 million in series B funding.

Prysm Capital led the round. Other investors included Lockheed Martin Ventures, Honeywell, Safran, Statkraft Ventures, the Virginia Innovation Partnership Corporation, and private investors. 

Virginia-based Electra (not to be confused with the electric vehicle charging or the iron refining startups with the same name) says its EL9 aircraft is meant to take off and land with 150 feet of runway space, roughly 10% of the space needed for traditional planes of a similar size. 

It works by using eight electric propellers to blow air over large flaps on the wing, creating additional lift at lower speeds, and is paired with hybrid-electric propellers. “It operates with the landing and takeoff versatility of a helicopter, the quiet of an electric vehicle, and the cost advantage and safety of a fixed-wing, fixed-propeller aircraft,” according to the company.

The aircraft is designed to carry up to 3,000 pounds and travel up to 1,100 nautical miles. The battery charges in-flight. 

For commercial use, the goal is to connect smaller communities that lack traditional aviation infrastructure, as well as accommodate areas with strict noise restrictions. The company also aims to enter the cargo and defense markets. 

The company says it has secured more than 2,200 pre-orders valued at over $10 billion. The funding will support pre-production and certification.

Hy2gen: $52.3 million

Hy2gen, which is developing tech to produce renewable jet fuel, has raised $52.3 million.

Hy24 led the round, with support from Technip Energies and the fund BenDa (owned by Hy2gen board chair Dana Kallasch). 

Germany-based Hy2gen is designing, building, and operating production plants for sustainable aviation fuel (SAF) and other products derived from renewable hydrogen.

The company earlier this year signed an agreement with Vinci Airports to supply SAF to commercial airlines operating at the Lyon-Saint Exupéry Airport in France by 2030.

Fora Travel: $40 Million

Fora Travel, a travel agency that is recruiting newbies as salespeople, has raised $40 million in series C funding. The company did not announce its series B round of $20 million in 2023. 

Thrive Capital and Insight Partners co-led the latest two rounds, with support from previous investors Forerunner Ventures and Heartcore Capital.

New York City-based Fora Travel said it works with thousands of travel advisors, 97% of whom are new to the industry. The company recruits them as gig workers and says it provides them training and tools to grow a business. The company provides a tech platform that its travel advisors use to complete bookings on behalf of consumers. 

The company says its portfolio includes nearly 6,000 hotels and that it has booked over $1 billion in travel, including 2 million room nights, since it was founded just over three years ago. 

Tern: $13 Million

Tern, a booking platform for travel advisors, has raised $13 million in series A funding. 

Viewpoint Ventures and Haystack VC led the round, with support from Upfront Ventures.

The startup in 2023 raised a seed round of $4 million led by Upfront Ventures. 

Tern, based in the U.S., says its platform includes an AI assistant, trip planner, invoicing, and AI products to generate city guides and packing lists. It’s meant to simplify multiple fragmented office tasks with a single platform. 

The platform launched publicly this week with more than 5,000 users and more than 1,000 agency clients, the startup said. 

The funding will go toward strengthening AI automation, payments, agency tools, and customer service. 

ROH: $9.2 Million

ROH, a payments platform for hotels, has raised $9.2 million. Highgate Technology Ventures and Acrew Capital led the round.

New York City-based ROH says its platform is meant to help hotels automate payment processing, receipt sending, and refund management from a variety of buyers. It also manages legal compliance and payment reminders

Select Highgate properties have been piloting ROH over the past two years. The funding will go toward business expansion and strengthening the product. 

Hotiday: $6.1 Million

Hotiday, which works with hotels to sell unbooked rooms, has raised $6.1 million (€5.5 million). P101 led the funding, with support from 40Jemz and a group of angel investors.

Milan-based Hotiday says it partners with more than 65 European companies, including hotel group TH Resorts. Users who book rooms through Hotiday can access online check-in and an app to book ticketed activities. 

The startup says it has seen 500% revenue growth since 2023. The funding will go toward expanding its portfolio in Europe, expanding services, establishing new partnerships, and hiring.

S4labour: $5.2 Million

S4labour, which provides a workforce management platform for hotels, has raised $5.2 million (€4.7 million).

YFM Equity Partners led the investment.

England-based S4labour says its platform helps hotels and restaurants streamline workforce management, scheduling, payroll, and human resources. It has more than 250 clients.

The funding will go toward business expansion and product development.

Roamr: $2.3 Million

Roamr, which incentivizes business travelers to stay with a colleague or friend instead of booking a hotel, has raised $2.3 million as a pre-seed extension. The startup raised $639,000 in September.

The funding comes from a group of angel investors.

Ireland-based Roamr works by providing client companies with an estimated cost to book a hotel in a business traveler’s destination city. If the traveler is able to stay with a person instead, then the client, the traveler, and the host each get 30% of that estimated cost. Roamr gets the remaining 10%. 

The funding will go toward expanding in the U.S. and building out tech.

Visa2Fly: $2 Million

Visa2Fly, which streamlines visa applications for travelers, has raised $2 million in seed funding.

M Venture Partners led the round, with support from Flipkart Ventures, FinSight Ventures, and Thinkuvate.

The India-based startup says its app automates various aspects of the application process, including document verification and real-time tracking. It can handle applications for 70 locations, including UAE, Singapore, Vietnam, Egypt, the UK, and several European countries.

The startup also partners with travel companies — like Ixigo, Acko, NiyoGlobal, SpiceJet, and WeGo — to embed its tech within their platforms.

The funding will go toward strengthening the tech and establishing partnerships with travel platforms.

Rimigo: $550,000

Rimigo, an AI trip planner, has raised $550,000 in pre-seed funding. Reazon Capital and SGgrow led the round, with support from a group of angel investors. 

India-based Rimigo says its app, which is in a beta stage, generates itineraries and recommendations for flights, accommodation, dining, and activities. The funding will go toward product development and hiring.