Five months after
a $170 million fundraise, Hopper is doing it again – this time $175 million
in Series G financing, bringing its total raised to date to $585 million.
GPI Capital led the round with participation from
Glade Brook Capital, WestCap, Goldman Sachs Growth and Accomplice.
Hopper says it will use the funds to accelerate growth –
including an aggressive hiring plan that will add 500 people to the current
staff of 1,200. The company says 300 of those new employees will work in
customer service, an area co-founder
and CEO Fred Lalonde has acknowledged was not equipped to handle the flurry
of requests that came in during the first several months of the pandemic.
Since then Hopper has grown its customer support team by
200% and developed automation tools that resolve about 60% of the support
requests.
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Hopper says it is also “actively looking to acqui-hire other
teams in travel, data science or engineering-heavy startups to introduce new
product offerings and fuel international expansion.”
In addition to its mobile-only B2C marketplace offering air,
accommodations and car rentals along with a suite of trip protection products, in
March the company launched Hopper Cloud, a B2B suite of API-enabled
solutions such as fintech products, agency content and data science
capabilities, with Capital One as its first client. In July, Amadeus
announced it will offer some of Hopper Cloud’s products to its clients
through the Amadeus Travel Platform.
“We feel strongly that our fintech offerings through Hopper
Cloud can help supercharge the travel industry’s recovery by introducing a
totally unique revenue stream for other brands. In fact, if all travel distribution
channels offered our fintech, it could increase the total consumer spend for
the sector by $200 billion annually,” Lalonde says.
“We are excited to be partnering with GPI and their distinguished
track record of supporting iconic consumer internet companies.”
Hopper says it is on track to see its revenue grow by 330%
this year compared to 2020 and has surpassed its pre-pandemic revenue peak from
Q1 2020 by more than 100%.
“Hopper has created a large market opportunity with unique
fintech products for the travel industry that applies an entirely
differentiated and attractive business model in which we are excited to work
with Fred and the leadership team to accelerate the flywheel,” says Khai Ha, managing
partner at GPI Capital who will join Hopper’s board.
“The company emerged from a challenging period for the
industry, bolstering its technology capabilities, customer service and its
opportunity set with a stronger, durable foundation. We are thrilled to be a
partner in this category-defining story.”