Startups

Travel activities platform Klook raises $225M led by SoftBank’s Vision Fund

Comment

Image Credits: Klook

We recently noted that SoftBank’s Vision Fund has stepped up its deal-making in Asia this year, and today it added a new company to its roster: travel services platform Klook.

Hong Kong-based Klook announced today that it has raised a $225 million round led by the Vision Fund with participation from existing investors. The deal — which is described as a “Series D plus” — comes just eight months after Klook announced its $200 million Series D at a valuation of over $1 billion. The company didn’t confirm what its new valuation is, but co-founder and COO Eric Gnock Fah (second from right in the photo below) did confirm to TechCrunch that it has increased.

Klook was founded in 2014 and it serves as an activities platform for users who travel overseas. That covers areas like visits to adventure parks, scuba diving, more localized tours or basics such as train travel, food or airport transfers, all of which can be found, paid for and taken using Klook’s platform. Today, Klook claims to host 100,000 activities across over 270 destinations. Its team has grown to over 1,000 staff and it has 20 offices, including sites in Europe and the U.S. as well as, of course, on its home turf in Asia Pacific.

Its rivals include KKday, a Taiwan-based company backed by the likes of Alibaba and Line, and FunNow. Outside of Asia, there’s Peek, Headout, Voyagin, GetYourGuide, Culture Trip and even Airbnb’s ‘experiences’ feature. Still, Klook has raised considerably more than any of these competitors.

This new injection means that Klook has now raised $425 million to date. Its investors include Sequoia China, Matrix Partners, TCV, OurCrowd, Goldman Sachs, Boyu Capital, Technology Crossover Ventures (TCV) among others.

Gnock Fah said that Klook has maintained a dialogue with SoftBank “for a while.” The company only recently raised its Series D so didn’t need the additional capital, but he said that it was moved by SoftBank’s “bigger vision” and its potential role in the SoftBank “ecosystem.”

That, in particular, means opportunities to work with other Vision Fund-backed startups in Asia. Gnock Fah specifically name-checked ride-hailing firm Grab in Southeast Asia and hospitality company OYO, as well as e-commerce companies Coupang in Korea and Tokopedia in Southeast Asia.

“We don’t do point to point or on demand so it’s synergistic on both ends,” he said of potential tie-ins with Grab — which is already working with OYO — while he cited Klook’s ongoing work with Alibaba, which has relationships with Tokopedia and Lazada in Southeast Asia.

(From left to right) David Liu, Chief Product Officer; Bernie Xiong, Chief Technology Officer and Co-Founder; Anita Ngai, Chief Revenue Officer; Eric Gnock Fah, Chief Operating Officer and Co-Founder; Ethan Lin, Chief Executive Officer and Co-Founder (PRNewsfoto/Klook)

The new funds will be used to go after growth in Western markets, Gnock Fah explained, as well as increasing Klook’s efforts in Japan — where it has been ramping up ahead of the Summer Olympics in 2020, and now has the SoftBank connection.

“Now is the time to scale up the fundamentals we’ve built in Western regions,” Gnock Fah said in an interview. “We already have a team on the ground — fundamentals are built — now it is about investing more on the supply-demand side.”

That sounds like increased online advertising spend — I often wonder how handsomely Facebook and Google profit from Vision Fund investments — while in Japan the company is working to cater to more Japanese travelers heading overseas on trips as well as inbound tourism. SoftBank has launched a number of joint ventures with Vision Fund companies to bring their services to the Japanese market — Paytm, WeWork, OYO and Didi Chuxing immediately come to mind — but Gnock Fah said nothing definitive has been decided.

“We’re in a lot of conversations with their team about how to work closely with them,” he said, pointing out that — unlike those aforementioned examples — Klook already has a presence in Japan.

Whenever the Vision Fund has invested in Asia-based companies, I’ve asked the founders how they handle the fund’s links to the murder of journalist Jamal Khashoggi, an outspoken critic of the Saudi regime. Crown Prince Mohammad bin Salman is widely believed to have ordered the killing, and he runs Public Investment Fund (PIF), the main LP anchor behind the Vision Fund.

Clearly, based on an increase in deals in Asia this year, the link isn’t putting founders off.

Most founders of Vision Fund portfolio startups that TechCrunch spoke to have supplied fairly platitudinous comments or declined to say anything at all — you can read a collection of them here — but Gnock Fah suggested a new (and unique) perspective.

“Because it is a relatively new fund, there’s more spotlight” on the Vision Fund, he offered.

Klook declined to provide a further statement on the Vision Fund and the Khashoggi murder following our interview despite a request from TechCrunch.

“The new capital isn’t about capital per se — our economics are heath — but more for a strategic investment angle,” he said, getting back to more fundamental founder talking points.

The Vision Fund-led cash infusion does mean that Klook, which has been pretty candid about a potential IPO, is putting off plans for a liquidity exit further down the road.

“Right now, there is no fixed timeframe,” Gnock Fah said. “Back in the early days, we had that aspiration… back then, if we wanted to raise $300-400 million [then] IPO was the way to get that.”

“We believe Klook is a leader in taking a mobile-first approach to the travel activities and services industry. The company has seen great success in scaling its business across different geographies and cultures, and we are excited to help them drive further innovation in the global travel industry,” said SoftBank partner Lydia Jett in a statement.

The Khashoggi murder isn’t stopping SoftBank’s Vision Fund

More TechCrunch

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft Build 2024: All the AI and hardware products Microsoft announced

Hello and welcome back to TechCrunch Space. For those who haven’t heard, the first crewed launch of Boeing’s Starliner capsule has been pushed back yet again to no earlier than…

TechCrunch Space: Star(side)liner

When I attended Automate in Chicago a few weeks back, multiple people thanked me for TechCrunch’s semi-regular robotics job report. It’s always edifying to get that feedback in person. While…

These 81 robotics companies are hiring

The top vehicle safety regulator in the U.S. has launched a formal probe into an April crash involving the all-electric VinFast VF8 SUV that claimed the lives of a family…

VinFast crash that killed family of four now under federal investigation

When putting a video portal in a public park in the middle of New York City, some inappropriate behavior will likely occur. The Portal, the vision of Lithuanian artist and…

NYC-Dublin real-time video portal reopens with some fixes to prevent inappropriate behavior

Longtime New York-based seed investor, Contour Venture Partners, is making progress on its latest flagship fund after lowering its target. The firm closed on $42 million, raised from 64 backers,…

Contour Venture Partners, an early investor in Datadog and Movable Ink, lowers the target for its fifth fund

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI to remove ChatGPT’s Scarlett Johansson-like voice

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says