JAKARTA (TheInsiderStories) – Indonesian property technology startup Travelio has raised US$18 million in its Series B financing round led by Singapore-based Pavilion Capital and China’s Gobi Partners, the company announced today (11/14).
The round was joined by existing backers including IndoGen Capital, Vynn Capital and Insignia Ventures, which participated in the company’s $4 million Series A funding round in May last year.
Travelio operates an online real estate platform that connects property owners and developers to potential tenants, who can browse and book fully furnished accommodations.
The company works primarily with property developers and their agents, unlike foreign competitor Airbnb, which mainly focuses on renting out single rooms or whole units listed by individual property owners.
“With the introduction of more services on its platform, Travelio looks to become “the go-to internet platform to meet the living needs of all Indonesians regardless of their duration of stay,” said Travelio co-founder and CEO Hendry Rusli in a written statement.
Travelio co-founder Christina Suriadjaja adding that right now users’ interaction with the platform is they only use Travelio to rent, which is done two or three times a year, and that’s it.
“Since they are already on our app, we want to provide more services to them. So anything you can think of that is related to their living needs, we will launch for them,” she said.
The fresh funds raised, Suriadjaja went on, will be used to invest in marketing, talent, and development of new product verticals. New services in the pipeline for property owners include interior design and payments for utilities and maintenance. New offerings coming up for tenants include daily necessities, financing, and payments of installments and flexible payment terms.
It has close to 5,000 exclusive management contracts signed in Jakarta, Tangerang, Bekasi, Depok, Bandung, and Surabaya. It plans to enter five more cities in the first quarter of next year. Room nights booked for properties under Travelio’s management rose six to seven times year on year.
Travelio has over 4,000 properties exclusively signed up with the platform, she said. The startup takes between 20 percent to 35 percent of the revenue cut from its property owner partners, she explained.
Typically, it would cost a little more than $350 for someone to rent an apartment for a month from Travelio. In Indonesia, currently, those looking for an apartment from property dealers and individual owners have to make a down payment of 20 percent and pay an advanced security deposit for more than a year. Through its pricing structure, Travelio is attempting to address this issue as well.
A number of startups including RedDoorz, Oyo, and Airbnb operate in Indonesia, but because they are focused on providing rooms for a day or two like hotels, this differentiates them from Travelio. Suriadjaja said Airbnb, which lists properties of Travelio, is more of a partner than a competitor.
In addition to offering these fully furnished apartments on rents, Travelio also takes care of house cleaning and maintenance of these properties.
“In the coming months, we will work on expanding the services we offer,” she said. Some of the services it is exploring include interior design, daily necessities, financing, payments, and other logistics-related offerings.
The startup aims to have 20,000 apartments on its platform in one year. With Indonesia’s rising middle-class population, Travelio is well-positioned to serve the growing demand for temporary housing, urbanization, and affordable living options, the startup said.
A recent research report by Google, Temasek and Bain&Co projected that Southeast Asia’s internet economy would top $100 billion this year. Indonesia, home to more than 260 million people, would be the biggest contributor to the internet economy’s growth in the region, the report said.
Written by Lexy Nantu, Email: firstname.lastname@example.org