Business travel company TravelPerk secures $325 million in funding as private equity interest in travel technology grows

Barcelona-headquartered TravelPerk made a significant move at the start of 2025 with the acquisition of expense management platform Yokoy after securing a substantial US$200m in funding. TravelPerk specializes in catering to the travel needs of small and medium-sized enterprises in the United States and Europe, offering a platform for members like Red Bull and Aesop to book and manage their travel expenses efficiently through cutting-edge technology.

The company’s focus on aligning travel costs with other business expenses comes as a response to the increasing regulations concerning expenses within corporate organizations. TravelPerk is currently driving its expansion in the United States and made strategic moves last year by acquiring AmTrav, a prominent travel management firm in the US.

This deal marks the initial venture capital investment in travel technology for the year, hinting at a flourishing trend that is likely to continue. Skift reports that investment banks have substantial funds – approximately US$300 billion – earmarked for deployment in the technology sector, with the travel industry being a primary target due to its rapid growth and outdated systems that present opportunities for investment.

According to ACG Partners, there were 180 mergers and acquisitions in the travel technology sector in the previous year, accounting for about one-third of all tech deals, a significant increase from the previous year. The majority of these deals were in the business-to-business arena, indicating a trend towards consolidation in the industry.

The heightened interest from private equity firms in the travel technology sector signals a maturing market, as noted by Laurence Tosi, managing partner and founder of WestCap. Tosi points out that private equity has historically not paid much attention to the travel sector, making their recent involvement a notable indicator of market evolution and maturity.

In Australia, some of the key players in the travel technology industry include Traveltek Australia, Aeronology, and Campstay. The chairman of The Travel Corporation (TTC) highlighted the importance of updating IT systems and engaging in mergers and acquisitions as focal points for private equity group Apollo in 2025, aiming to drive substantial growth within the business in the coming years.

The intersection of travel and technology continues to garner interest and investment, with a focus on leveraging innovative solutions to streamline processes, enhance user experiences, and drive business growth. The evolving landscape of travel technology presents opportunities for investors, entrepreneurs, and established companies alike to capitalize on the changing dynamics of the industry.