Omio raises US$80m to develop ground transportation platform
Omio, the ground transportation platform, has announced a further 80 million USD investment from some of the world’s leading tech and growth investors including Lazard Asset Management, Stack Capital Group, NEA, Temasek, and funds managed by Goldman Sachs Asset Management, amongst others. The fresh funding for Omio comes as global travel and bookings are rebounding to record levels following two years of consumer uncertainty.
Naren Shaam, CEO and Founder of Omio, stated:
“I am incredibly grateful to announce another key milestone in Omio’s journey: this funding from a strong roster of investors, after a rough 2+ years, underlines the enormous power and potential of our business model, as well as our belief that the human need to travel is unwavering. This desire to travel has evolved, and we are observing exciting fundamental shifts in the sector, such as a move towards ground transport, mobile-first bookings and an increase in non-hub travel, all of which will fuel our growth for years to come. The fresh funds will allow us to pursue our vision of a globally unified transportation network on a single digital platform.”
Omio has invested in its product, inventory and its core business of ground transport over the past 2 years, including launching Portugal to become the first third-party booking platform to sell tickets from Comboios de Portugal, the country’s state-owned railway company. Further strengthening its unique customer experience, Omio launched a self-service desk to allow customers to alter and cancel bookings themselves, making the individual travel experience even more customised.
The capital raised will be prudently deployed to reinitiate global expansion activities including M&A, as well as through further leveraging our transportation data and extensive inventory by scaling our partnerships, such as the existing collaborations with Kayak, Huawei, LNER (London North Eastern Railway) and others. Additionally it will be utilised to build out Omio’s product and services, as well as to further invest in its talent and work diligently towards sustainable profitability.
In addition to an increase in customer demand, Omio is rebounding faster than several of the largest travel platforms, for instance, ticket bookings are more than 140% above 2019 levels (pre-pandemic). This comes hand-in-hand with a continuous shift to booking transportation via mobile applications, as well as a sustained shift to more sustainable transportation modes. In fact, 80% of Omio’s bookings are mobile, and they have seen a 25% increase in App booking since January 2019, while desktop bookings decreased by 13%. Travellers’ habits have further shifted, and Omio are observing more sustainable behaviours, for example, overall flight bookings are down 50% while ground transportation bookings are above pre-pandemic level. Omio has collected all of this data in its first Omio European Mobility Report, which is available here: omio.com/corporate/reports/eu-mobility-report
Goldman Sachs Bank Europe SE acted as sole placement agent in the transaction.