Topics
in vogue
AI
Amazon
Image Credits:Getty Images
Apps
Biotech & Health
mood
Image Credits:Getty Images
Cloud Computing
Commerce
Crypto
go-ahead
EVs
Fintech
Fundraising
Gadgets
stake
Government & Policy
ironware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
surety
Social
Space
startup
TikTok
fare
speculation
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Yet another major investment is exit down in the travel sphere , underscoring itsongoing reboundafter the COVID-19 pandemic . Prosus , the tech conglomerate hold by Naspers , ispaying $ 1.7 billionto acquireDespegar , one of the bragging online travel agencies in Latin America , to scale up its operation in the region .
Despegar ’s plug-in of directors has sanction the deal , which will now go to a shareholder balloting , Prosus said in a statement today . It look the slew to fill up in Q2 of 2025 .
With GDP across LatAm expected to arise 2%-3 % next yr , Prosus wants to utilise Despegar to lean into bully economy of scale in the region . It already owns food obstetrical delivery program iFood and Sympla , Latin America ’s solution to Ticketmaster , and together it will have 100 million client across all three prop after the wad closes .
“ This acquisition is a clear demonstration of our scheme to progress time value by creating a gamey - quality ecosystem of completing businesses , ” said Fabricio Bloisi , CEO of Prosus Group , in a statement . “ Despegar is a highly profitable company , with an attractive food market perspective , and an experienced management team – making it a natural improver to our presence in Latin America . We will speed up Despegar ’s growth by leverage the extensive customer touchpoints within our portfolio . ”
This is a seemly resultant for Despegar , which has struggled to mature in the last X of economic , societal and public health turmoil in the region .
The ship’s company , based out of Argentina , is publically traded on the NYSE and had a food market cap of $ 1.24 billion as of last Friday , at marketplace tight . This sight — which specifically will see Prosus pay $ 19.50 per share — is a 33 % agio on that Leontyne Price , but it is also , notably , still less than the market place chapiter that Despegar had on its first day of public trading in 2017 .
On Despegar ’s side , it could give the company a hike of investing in the nigh term .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
“ For our customers , this means access to an expand portfolio of services , better experiences , greater commitment benefits and more complete solution tailor to their need , ” said Damián Scokin , CEO of Despegar , in a argument .
The deal is one of the latest of a spate of investments in travel and touristry technology at the moment . Most recently , last week , Hostaway — which builds software program for the private short - term rental market — raised $ 365 million led by General Atlantic . General Atlantic , as it happens , was once an investor in Despegar when it was still a individual company . Other backers over the years included Accel , Tiger Global , Sequoia , hotel behemoth Accor , TPG and even Yahoo ( parent company of TechCrunch ) .
Despegar is one of the old and bigger online change of location brands in the food market , having been around in one form or another ( it also curb another major Romance American change of location stigma , Decolar in Brazil ) since 1999 , during the first dot - com roar .
These days , it is active in some 19 unlike markets in the region , operating both a direct - to - consumer service as well as a white - recording label offer used by banks , airline business and other retailers selling travelling services to their customers .
And yes , it ’s work to keep up with the times , and it has built a colloquial chatbot called Sofia . Competing against the like of Hotel Urbano , Despegar says that it pick up some 9.5 million proceedings annually , working out to $ 5.3 billion in gross reservation , $ 706 million in revenue , and EBITDA of $ 116 million ( based on its full - year 2023 results ) .
