May 19, 2024
snapcommerce sms messenger 107m inovia capitalsimpsonbetakit

The Toronto-based travel technology startup Snapcommerce revealed in March 2021 that it has received CAD 107 million in expansion investment from international private equity firm Lion Capital and Inovia Capital through its Growth Fund I. Acrew DCF, Thayer Ventures, Full In Partners, as well as current investors Telstra Ventures and Bee Partners, participated in the further fundraising round.

The business will invest the money from the fundraising round in its extensive mobile commerce play, which will be backed by a significantly bigger crew. By early 2022, it plans to increase its workforce from 150 to 450, with 300 of those positions being in customer service.

In 2016, Hussein Fazal and Henry Shi launched the business (formerly known as Snaptravel). Customers can locate and do hotel bookings and tickets at the best cost through messaging services like SMS and Facebook Messenger thanks to Snapcommerce’s AI-driven technology.

The money, according to CEO Hussein Fazal, would enable them to expand more quickly and eventually reach the stage where they can go public and carry out their larger aim of revolutionizing mobile shopping. He continued by saying that it is a significant improvement and will help the company grow.

According to Inovia partner Chris Arsenault, mobile commerce is the way ahead. The startup’s readiness to diversify outside Snaptravel is directly tied to Inovia’s choice to boost its investment in Snapcommerce. The platform is prepared to genuinely pursue new verticals outside of travel, according to Arsenault, who was cited as saying, “For us, the purpose why we’re doubling up.”                   

Over 100 million messages have been sent and received using Snapcommerce (through Snaptravel) since its launch. According to the business, this usage has resulted in direct savings of more than US$ 75 million. As a result of Snaptravel, Snapcommerce anticipates that at some point this year, total mobile sales made through its network will surpass US$1 billion.

In light of the pent-up desire for travel, the vaccine announcement, the vaccine rollout, and what we anticipate for the travel industry over the next one to two years, investors were undoubtedly quite thrilled.            

The business had previously secured US$ 21M in a Series A fundraising round that took place in 2018.