Hotel Startup Engine Raises $140 Million in Series C Funding

Engine, formerly known as Hotel Engine, has secured a massive $140 million Series C funding round led by a fund advised by private equity firm Permira. This investment catapults the Denver-based startup's valuation to an impressive $2.1 billion.

• This valuation represents a significant 62% jump from the company's previous $1.3 billion valuation following a $65 million Series B round in late 2021.
• Engine's impressive growth underscores the continued resurgence of business travel, a sector heavily impacted by the COVID-19 pandemic.

Engine's Platform and Growth

Engine's platform connects business travelers with a vast network of over 750,000 hotels, 300 airlines, and 40 rental car companies. The company also offers travel providers a robust platform to manage reservations, create marketing campaigns, and provide special offers to business travelers.

• Engine has achieved profitability and boasts an impressive 70% year-over-year revenue growth.
• The company plans to leverage the fresh capital to accelerate product development, including the launch of flight and rental car booking capabilities on its platform.

Rebranding to "Engine"

In a strategic move, Engine is rebranding to "Engine," reflecting its broader vision beyond hotel bookings. The company aims to become the go-to platform for all business travel needs.

• "Hotel bookings will always be in our DNA, but we're out to transform the entire travel experience," said CEO Elia Wallen in a press release.
• "We want to become the engine of business travel. Our new name will reflect that, and with Permira's latest investment, we'll be better positioned than ever to turn our ambitions into reality."

Largest Travel Business Startup Funding Round of 2024

This Series C funding round marks the largest investment secured by a travel business startup this year, surpassing the approximately $106 million Series D raised by Spain-based TravelPerk in January.

• Engine has raised a total of $221 million since its founding in 2015.

Impact of Engine's Growth on the Travel Industry

Engine's success signifies a positive trend in the travel industry, particularly for business travel. The company's focus on providing a comprehensive and user-friendly platform for business travel needs is likely to attract more travelers and further accelerate its growth.

• Engine's expansion into flight and rental car bookings will offer a more complete travel solution for business travelers.
• This could potentially disrupt the current landscape of business travel booking platforms.

Permira's Investment Strategy

Permira's investment in Engine reflects the firm's confidence in the growth potential of the business travel sector and Engine's position as a leader in the industry. Permira's expertise in supporting technology-driven companies is likely to play a crucial role in helping Engine achieve its ambitious growth plans.

• Permira's experience in scaling businesses and its network of industry contacts could prove invaluable to Engine's future development.

Engine's Future Prospects

With a strong valuation, a growing platform, and strategic partnerships, Engine is poised to become a major player in the business travel landscape. The company's commitment to innovation and its focus on creating a seamless travel experience for business travelers are likely to drive its continued growth in the coming years.

• Engine's expansion into new travel segments, such as flights and rental cars, will further enhance its value proposition for business travelers.
• The company's strong financial position and strategic partnerships will enable it to invest in cutting-edge technologies and attract top talent, solidifying its leadership in the industry.