TRAVEL booking platform Klook has raised US$100 million in a new founding round led by Vitruvian Partners, bringing the total raised to more than US$1 billion, as the company focuses on Millennial and Gen Z travellers.
The two younger generations make up about 70 per cent of Klook’s user base, with more than four-in-five bookings made on its mobile app. That’s made social media platforms a key channel to win customers, according to Eric Gnock Fah, the company’s co-founder and chief operating officer.
“Social is becoming the new search,” Fah said. “People are searching on TikTok and Instagram, so that is definitely the trend we continue to capitalise on.”
Younger travellers are also gravitating more towards authentic and personalised experiences, which has become a big change in the way people like to spend their free time. Rather than choose a destination and then plan what to do there, younger people are prioritising activities or experiences first, according to a recent report by McKinsey & Co, which estimated the global experience market may be worth more than US$1 trillion.
“Gen Z are budget cautious, but they’re not afraid to pay if they think the value of the services are actually worth it,” said Ethan Lin, Klook’s other co-founder and chief executive officer.
The company already partners with TikTok, where users can book directly through the app. Klook has also collaborated with more than 20,000 influencers, who can earn commissions and sponsored trips.
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The latest fundraising will drive Klook’s next phase of growth, the company said. Vitruvian Partners, which has around US$20 billion of funds under management and has previously backed the likes of food delivery service Just Eat and travel platform Skyscanner, joins existing investors including Softbank Group and HongShan Capital Group, formerly known as Sequoia China.
Klook’s last fundraising round took place in December 2023, when the company received US$210 million, led by Bessemer Venture Partners.
Despite the new funding round, Klook has no concrete plans around going public just yet, though it does have a “loose projection” of an initial public offering in the next couple of years, according to Lin. The Singapore-based company has previously said it would be prepared to list in the US or Hong Kong.
“It’s always a question about where the market is,” Lin said. “We do see the capital market slowly picking up in the last six months.”
Founded in 2014, Klook reached unicorn status in 2018 and turned profitable in 2023. Its platform brings in over 70 million monthly visitors and has seen more than 140 million trips booked. It competes with other global travel booking sites such as Booking.com and Expedia, as well as China’s Trip.com and South Korea’s Yanolja. BLOOMBERG
