Photo: Duc Minh
$3 million in funding to come from FengHe Group and Hancock Revocable Trust.
Vntrip.vn, a new online travel booking service provider, has completed Series A fund raising of $3 million.
The funding comes from the FengHe Group and Hancock Revocable Trust. The FengHe Group is led by Mr. John Wu, who began his career in Silicon Valley in the late 1980s and most notably was an angel investor and CTO of China’s well-known online trading site Alibaba.com.
Mr. Scott Hancock, meanwhile, has more than 20 years private equity and early stage investing experience from holding senior positions at Oak Hill Capital, Continuity Capital Partners and Deep Sky Capital.
Both lead investors will have board seats to provide invaluable guidance and oversight to Vntrip.vn’s strategy and growth going forward. Vntrip.vn has been valued at VND300 billion ($13.6 million) by both investors.
“With the new capital and strategic guidance, Vntrip.vn will increase consumer traction as well as offer the greatest services to our customer,” Mr. Le Dac Lam, Co-founder and CEO of Vntrip.vn, told VET. “This is the first target of development.”
It also announced its official launch and activation on July 11 after a trial run of more than six months, though it was established in late 2014. It is also suitable for mobile apps through the Android and iOS platforms.
Services on Vntrip.vn can be paid via credit card, internet banking, or cash payment at a hotel. The total value of Vietnam’s online travel booking services industry has been estimated at some $154 million, accounting for only 8 per cent of the total in 2015.
The figure may rise to $750 million by 2020, according to Vntrip.vn. “The chances for Vntrip.vn to grow strongly in the future are huge,” said Mr. Wu. “This series A funding will spur its growth and build up its dominant role in the local market.”
“We see the chance to dominate the local market for online travel booking services, which is valued at nearly $1 billion within the next five years,” said Mr. Hancock.
Total international arrivals to Vietnam reached 4.7 million in the first six months of the year, an increase of 21.3 per cent against the same period of 2015. Domestic tourists totaled 32.4 million in the first six months, a fall of 7.6 million over the same period of 2015, according to the Vietnam National Administration of Tourism (VNAT).