Indonesia’s Travelio announced that it has raised an undisclosed amount in Series C funding as it seeks to become a dominant player in the country’s apartment rental market.
The company’s Series C round was led by a large Korean financial group and included new investors such as Korea’s DAOL Ventures, Orzon Ventures, and Appworks from Taiwan. Existing investor Temasek’s Pavilion Capital also participated in the round.
Despite the staggering vacancy rate of apartments in Indonesia above 50% since 2019, the average annual primary apartment unit sales rate remains high, ranging from 87 to 89%.
Travelio has effectively provided high rental income for apartment owners and affordable rental options for tenants seeking short to long-term rentals.
With more than 15,000 properties exclusively managed by the platform, Travelio currently operates in 12 cities, including Jakarta, Tangerang, Bekasi, Bogor, Depok, Bandung, Surabaya, Semarang, Karawang, Makassar, Yogyakarta, and Medan, with plans to expand to other cities this year.
Travelio is the only online and transactional platform in Indonesia that allows tenants to pay monthly for a yearly rental, and the company has expanded its product to include unfurnished apartments and houses.
Apart from providing fully-furnished apartments, Travelio’s property management arm that operates fully-furnished apartments has achieved adjusted EBITDA positive since last year.
The company is expected to achieve adjusted EBITDA positive by the end of this year. With more than 600 staff, Travelio has not performed any downsizing activities or layoffs since the pandemic.
Part of the fresh funding obtained will be used to launch a new vertical in the rent-to-own sector. “We are excited to launch this new initiative as it will solve the low home ownership issue for middle-class millennials, which makes up the majority of our tenants. This way, we won’t just be a temporary solution for them for a couple of years but instead for their lifetime,” said Christina Suriadjaja, Co-Founder and CSO of Travelio.
Travelio recently celebrated its 8th anniversary at its Jakarta headquarters and is currently hiring for new personnel.