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The startups on the list this week exemplify two growing areas of opportunity in travel.
One, airline tech: Consumers have made it clear that they expect high-tech experiences when they travel, but airlines often disappoint in that department.
Two, a burgeoning travel industry in India: The middle class is growing in India, and one of the first things people do when they have expendable income is travel. A growing number of startups focused on Indian travelers have been raising money in the last couple of years. The two on this list are focused on budget travelers.
Three startups involved in the travel industry raised nearly $90 million over the last week.
Ditto: $82 Million
Ditto, which helps airline tech systems communicate and synchronize data while offline, has raised an oversubscribed series B round of $82 million.
Top Tier Capital Partners and Acrew Capital led the round, with participation from Thomas Tull’s U.S. Innovative Technology Fund, True Ventures, Amity Ventures, Fundrise, Friends & Family Capital, Advance Venture Partners, and Internet Initiative Japan.
The company last raised $45 million in 2023.
The airline industry is a major market focus for Ditto and has been the source of many of its major clients so far, although the software is not exclusively for the travel industry. Customers include Delta, Alaska Airlines, Lufthansa, Japan Airlines, and Etihad Airways, as well as the U.S. Air Force. Ditto has also partnered with Hugo, a Central American company whose app is used for ticketing and mobile food orders at Latin American stadiums and event venues.
San Francisco-based Ditto says its tech, which is integrated into client platforms, has sparked interest from the airline industry because it allows better connectivity and real-time data sharing in environments when internet connectivity is not always available. During flights, for example, the tech enables passengers to digitally order meals and also allows flight attendants to communicate with each other via mobile devices.
Ditto said its tech works by automatically managing multiple network paths — such as Bluetooth, peer-to-peer Wi-Fi, and local computer networks — to find and connect to other devices and synchronize any data changes. Those changes are stored locally and then synced instantly once the tech can connect again with the cloud or its main network.
The company said that its annual recurring revenue has increased by 250% since last year and customer count has doubled.
The funding will go toward deepening partnerships with other tech companies, expanding into new markets, and scaling globally.
GoStops: $4 Million
GoStops, a hostel brand in India, has raised $4 million (350 million Indian rupees) in series A funding.
Blume Ventures and 1Crowd led the round, with support from Mumbai Angels, Chennai Angels, Indian Angel Network, Lead Angels, and Yuj Ventures.
India-based GoStops plans to expand from 2,500 to 10,000 beds across 100 locations in the next 24 months. The funding will also go toward strengthening operations, enhancing technology, and building the brand. The company is focused on younger travelers, particularly remote workers.
The company plans to secure debt financing toward its expansion.
NapTapGo: $500,000
NapTapGo, a tech-enabled sleeping pod hotel startup, has raised $500,000 in pre-seed funding.
T9L Qube led the round.
India-based NapTapGo says its hotel pods are modeled after the popular Japanese product. The company sets up small hotels in commercial spaces in high-traffic areas. The spaces include sleeping pods as well as a shower area, lounge, cafeteria, and lockers. The pods are soundproof. Guests can book the pods online for a number of nights or for just a few hours.
The company targets solo travelers, working professionals, and frequent business travelers who prefer affordable places to sleep near IT hubs and destinations, particularly religious sites.
NapTapGo owns the brand and operates the hotels, partnering with commercial real estate owners. The company is looking for spaces between 3,000 to 5,000 square feet in high-traffic city areas.
The startup plans to establish over 80 hotels in the next five years. For now, the company has one location in Noida, India.
