Hotel Urbano receives $50 million in funding from Tiger Global
Hotel Urbano is an online travel agency that has raised 120 million Reais ($50 million) from Tiger Global Management and Insight Venture Partners. The Brazilian travel industry is booming as the World Cup and Olympics are coming up.
“Today we have 450,000 hotel rooms in Brazil, and this number will almost double,” stated Hotel Urbano co-founder Joao Ricardo Mendes.
The cash from this round of funding will go towards conducting direct negotiations with hotels across the country. Around 85% of the 14,000 hotels operating in Brazil are individually owned. Hotel Urbano will expand its sales and marketing teams internationally.
Hotel Urbano was founded in 2011 with 5 employees and now has over 500 employees. Hotel Urbano’s revenues will hit nearly R$1 billion (around $427.4 million) by the end of this year. This is up from R$90 million ($38.5 million) in 2011.
Hotel Urbano has two concept stores, but most of their revenue comes from its hotel booking service. The company also offers package booking services.