Travelguru with $10 million round

Filed in archive Venture Capital on February 2, 2006

ContentSutra has the scoop on the round for one of India's largest online travel companies - TravelGuru:

"Today's The Economic Times has some financial details of the deal. Travelguru is being capitalised with a $10 million funding, and it is projecting revenues of $100 million in five years if the buoyancy in the sector sustains. An American VC is tipped to join WBCP in this round of capitalisation shortly, although company officials refused to comment. According to Damera, Travelguru was rolled out with about $2,50,000 of initial funding raised partly -accounting and legal fees - from the Harvard Business School and rest from family and friends. The promoters hold nearly half the equity in the company. The company is modeled on the basis of Expedia, which had become a $6 billion company in market cap in 10 years."

Booking travel online is still novel in India but as discount airlines proliferate the usage will also increase for other travel bookings will jump. Travelguru should not find it too hard to make a living on this.