INSUBCONTINENT EXCLUSIVE:
startup aiming to digitize the travel activities industry, has pulled a$23 million Series B round of financing and uncorked a partnership
with Google that will help increase its visibility.
Founded in 2012 byRuzwana Bashir (CEO) and Oskar Bruening (CTO), the San Francisco-based
startup describes itself as &OpenTable for the activities market& in that it aims to make booking activities as seamless and straightforward
as a restaurant or even a flight.
Peek raised $10 million two years ago, and this new round is led byCathay Innovation with participation
from existing backers that include ex-Yelp COOGeoff Donaker, Kayak founderPaul English, I2BF and Manta Ray
Peek has plenty of well-known angel backers, includingPete Flint — founder of Trulia and NFX — former Google executive chairmanEric
Schmidt and Twitter CEOJack Dorsey
This new round takes it to $40 million from investors to date.
In addition to the money, the startup has announced a tie-up with Google that
will see its inventory added toGoogle Search, Google Maps and Google Trips
That sure to help visibility and spike bookings, and it adds to other partnerships that Peek has struck with platforms that include
Yelp.
Peek is taking aim at the global activities market which Bashir estimates is worth some $150 billion, with the U.S
being the most lucrative market on the planet.
&It hasn&t gone through the analog-to-digital transition like other industries,& she told
TechCrunch in an interview
&So we&re building the infrastructure and software that emerged in other industries ten years ago.&
Peek business model is similar to two
well-funded Asian companies, Klook — which has raised over $90 million from the likes of Sequoia China and Goldman Sachs — and KKDay,
which was recently backed byJapanese travel giant H.I.S.
Despite that, Bashir said that the problem of digitizing the space isn&t just limited to Asia or emerging markets.
&When you look at
businesses in the U.S., over 70 percent don&t have real-time online booking, you still have to call the business or email them,& she
explained.
That an important point, and it underlines the approach that Peek has taken
Unlike its Asia-based rivals, the company has a double-sided business which starts by offering booking software that allows travel companies
to enable bookings and sales on their own website
It also allows them to run their businesses from mobile, which is increasingly important for businesses that exist outdoors, as is common in
travel and activities.
That the hook that gets them into Peek, and from there the company offers more services under its ‘Pro& service and
also the consumer-facing platform that service providers can join
That the platformthat travelers (or, rather, action-seekers) use to book activities
That distinction on ‘travelers& is important since Bashir said that around one-third of Peek bookings come from people doing things in
their own town, so noteveryone is traveling.
Peek founders Oskar Bruening and Ruzwana Bashir.
Peek claims to offer10,000 experiencesin the
and Mexico, as well as spots like Paris and London
It has 500,000 reviews and ratings, each of which is verified since users can only leave them if they have booked, paid-for and completed
their activity.
Bashir said, in addition, that the company software has scaled to handle &hundreds of millions of dollars& in booking volume
She declined to give specific financial details, including revenue and profit/loss, but did say that the company unit economics are &highly
profitable& but it is seeking growth right now.
&Part of this round is allowing ourselves to go out and reach more businesses,& she
added.
For now, Peek is keeping its focus on the U.S
but it has also expanded into Mexico since that is a well-trodden destination for U.S.-based travelers
That focus will continue following this round, with Bashir adamant that with an estimated two percent of activity spend booked online, there
plenty of potential growth to be had at home before tackling international markets.
She did, however, say that the decision to work with
CathayInnovation — which raised its inaugural $320 million fund last year —was partly borne out of an awareness that when it is time to
venture overseas, the firm has experience and networks that will be helpful.
