Caravelo receives 3 million euro capital injection
BARCELONA – 11th July 2022 – Caravelo announced today that it has received a 3 million euro capital injection from Banco Sabadell via Sabadell Venture Capital and Inveready Venture Finance. The new funds will be used to support the growth of the company’s travel subscription solutions.
The news comes at a period of fast growth for Caravelo, who has seen revenue from its subscription solutions double in the first half of the year and is expecting a 4x growth by the end of the year.
The company’s CEO, Iñaki Uriz, stated that:
“ In the past year, the industry has finally woken up to the power of subscriptions, and we have seen a marked increase in the number of airlines that are working with us to build subscription programs. We are expecting to make new announcements before the end of the year, including the launch of a new type of subscription product by a large carrier in Latin America.”
As the company continues to grow and innovate, data from its clients confirms an increasing adoption of subscriptions by travelers and growing benefits for the airlines.Volaris’ v.Pass, for example, recently reported a 95% increase in users YoY as well as revenue that is already 105% above pre-covid levels, figures that are in line with the growth seen by other Caravelo customers.
Caravelo’s leadership indicated that the new funds will contribute to strengthening the company’s competitive position, lowering the time to market for new programs and developing more advanced features.
Caravelo is a travel-tech company that provides subscription solutions to the travel industry. We help our clients increase revenue and market share while also improving crisis resilience, reducing the impact of seasonality and creating a better customer experience. The SaaS company has been providing flight subscriptions solutions and know-how to airlines since 2015 and is currently the only company in the world that can create and manage true flight subscription programs.
About Inveready Venture Finance
Inveready Venture Finance invests in seed to Series A-B companies that have strong credit profiles and significant equity upside, with investments ranging from €300k to €5m per company. Inveready Venture Finance co-invests alongside equity funds to lever the returns potential, but also transacting in pure financing rounds.
Although sector agnostic, investments are generally in high growth, innovative companies that benefit from the reduced dilution that Venture Debt financing offers by combining debt with equity remuneration. As of now, from its 3rd generation fund of €50m size, it has invested in 23 companies such as Ritmo, Habyt, Iriusrisk and PadelNuestro, among others.
About Sabadell Venture Capital
Sabadell Venture Capital is the venture capital division of Banco Sabadell. Its core mission is to provide support to start-ups from seed to Series B. Sabadell Venture Capital takes a minority ownership, with an investment range between €100k and €2m per company in capital and 200k€ up to €6m per company in debt.
Sabadell Venture Capital seeks to support digital and technological companies with high growth potential and innovative business models. At present, Sabadell Venture Capital offers two products to finance growth (i) through direct investment in equity (venture capital) and (ii) through venture debt. As of now, more than 30 investments have been made in companies such as Exoticca, Adsmurai, Smile2Impress and Captio.