Allianz Global Investors and Orion Capital Asia, a Singapore-based private credit investment manager, joined the latest financing round for Traveloka, a leading online travel booking platform in Southeast Asia, as the apparent ebbing of the Covid-19 pandemic feeds expectations of a further increase in regional tourism.
“Traveloka is a strong leader in the online travel space in Southeast Asia, a region which has become one of the most popular tourist destinations in the world,” Celia Yan, head of Asian private credit at BlackRock, said in a joint news release. “We are delighted to be the lead investor for this financing transaction as part of our dedicated private credit strategy to support Traveloka’s business growth.”
INA President Ridha Wirakusumah said online travel agencies’ share in Indonesia’s gross tourism booking rose to 33% last year from 24% before the pandemic. It is projected to reach 36% by 2024, he said.
The INA’s decision to invest in Traveloka, he added, aligns with the fund’s mission to boost the nation’s welfare over the long run “by laying down the foundation for a sustainable digital ecosystem, including digital infrastructure, digital services and digital platforms – which will go a long way to drive economic recovery and growth.”
Established in February 2021, the INA invests in sectors including infrastructure development, health care, renewable energy and the digital economy. Thursday’s announcement follows the signing in April of the fund’s first concrete investment pacts, to provide around 39 trillion rupiah (US$2.55 billion) for toll roads on the Indonesian islands of Sumatra and Java.
Companies involved in Traveloka’s latest fundraising said the round “attracted significant interest” from a number of high-quality long-term capital providers, resulting in an oversubscribed transaction.
Ferry Unardi, chief executive officer and co-founder of Traveloka, said business continues to accelerate as the regional travel industry rebounds from the pandemic. He said the latest financing round will allow Traveloka “an opportunity to further strengthen our balance sheet” while expanding its business.
Traveloka is known as the Southeast Asian equivalent of US travel booking service Expedia. Its backers include Expedia Group, the Qatar Investment Authority and Singaporean wealth fund GIC. It was valued at US$3 billion as of July 2020, according to CB Insights.
Bloomberg reported that Traveloka is considering an initial public offering in the US or Indonesia. Talks to go public via a merger with a blank-check company fell through last year.