Korea’s Myrealtrip has just secured a whopping $56.7 million in funding, thanks to the growing demand for travel post-pandemic. The Seoul-based travel tech company announced today that it has completed a Series F equity round to fuel its business and product innovation, as well as ramp up its hiring efforts.
According to a recent report by the UN World Tourism Organization, global tourism has bounced back to pre-pandemic levels in the third quarter of 2023. As a result, travel tech companies are gearing up to expand their operations and capitalize on the rebound.
“The travel industry was fragmented 12 years ago in South Korea, and there was no platform that provided travel information,” explained CEO Donggun Lee in an exclusive interview with TechCrunch.
Myrealtrip, which has been in the travel industry for 12 years and boasts 7.9 million users in South Korea, has set its sights on becoming a super app in the travel industry. The company offers a wide range of travel booking services, from flights and accommodations to activities and local transportation.
Partnering with over 2,000 travel agencies and platforms such as Expedia, Agoda, and Viator, Myrealtrip allows travelers to book tours, activities, restaurants, local transportation, as well as hotels and Airbnb-like accommodations, both domestically and globally.
Lee revealed to TechCrunch that the company’s valuation has grown threefold since their last equity funding round, Series D, in 2020. While he did not disclose an exact figure, previous media reports estimated Myrealtrip’s valuation to be over 200 billion KRW in 2020.
He also shared that the company’s revenue has tripled since 2022, with a gross merchandise volume (GMV) of $746 million (1 trillion KRW) in 2023. This year, Myrealtrip aims to double its GMV and generate an EBITDA of $12 million.
Like many travel companies, Myrealtrip faced challenges during the pandemic. However, with the funding secured in 2020 and additional debt financing in 2022, the Korean startup was able to weather the storm and prepare for the post-pandemic era.
“Myrealtrip focused on domestic tourism and introduced new features such as group trips and business travel to survive the last two challenging years,” said Lee.
The company not only expanded its domestic tourism offerings but also made strategic acquisitions and investments. In 2022, Myrealtrip acquired Startrip to cater to the influx of foreign tourists expected to visit South Korea post-pandemic. This travel platform specializes in K-pop themed spots, including locations featured in popular boy band BTS’s music videos. Lee intends to run Startrip as a separate entity and enhance its services with advanced technology.
Additionally, Myrealtrip invested in IwaTrip, a Korean travel platform that helps users find suitable destinations for traveling with kids, and O-Peace, a co-working and co-living space platform designed for digital nomads.
To stay ahead of its competitors like SoftBank-backed Klook, which raised $210 million recently, Yanolja, Agoda, and Airbnb, Myrealtrip plans to invest more in technology and AI capabilities before its scheduled IPO in 2026. The company currently uses AI chatbots for customer services.
Returning investors BlueRun Ventures Korea and IMM Investment co-led the Series F round, bringing Myrealtrip’s total equity funding to approximately $113 million (150 billion KRW) and its debt financing to $39 million since its establishment in 2012. New investors Korelya Capital, making its first investment in South Korea, and Vanderbilt University’s endowment fund, along with previous backers such as Altos Ventures, Partech Partners, Smilegate, and SV Investment, also participated in the funding round.
With 300 employees as of now, Myrealtrip is poised for further growth and success in the travel industry.
