(Bloomberg) -- Berlin-based travel booking company Omio Corp. has secured a $120 million debt facility from venture lending firm Hercules Capital Inc., which it said it will use to finance mergers and acquisitions.
The company also plans to expand to Southeast Asia in the first quarter of 2025, after becoming profitable for the first time this year, Chief Executive Officer Naren Shaam said in an interview. He declined to disclose his firm’s valuation.
Travel companies like Omio had to fight for survival during the Covid-19 pandemic. As the market rebounded, they have been competing aggressively on thin margins and seeking opportunities to consolidate.
Omio, founded by Shaam in 2013 as GoEuro, lets people compare prices and book tickets for air, bus, rail and ferry journeys with more than 1,000 transportation providers in 37 countries. In 2019, it bought Australian rival Rome2Rio.
The company crossed a billion dollars in sales for the first time this year and earned $10 million before interest, taxes, depreciation, and amortization, according to unaudited numbers provided by the company.
Shaam said he preferred raising debt over equity because it has less dilution and doesn’t force the company to spend it.
“If there’s a good strategic investor that gets us closer to public markets, then we’d of course consider it,” Shaam added.
The company has previously raised more than $400 million from investors including Atomico, Battery Ventures, Goldman Sachs Investment Partners, Temasek and NEA, according to its website.
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