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iTech Capital invests $10m in Aviasales

0 11 February 2014

iTech Capital has invested $10 million in travel metasearch service Aviasales in return for a minority stake in the project.  

AviaSales, unlike online travel agencies (OTAs) like OneTwoTrip, and Eviterra (which recently went bankrupt), does not sell tickets, but instead generates income by redirecting users to airline / OTA websites. This allows it to display all possible flight options, including budget airlines, in one place. In contrast, OTAs tend not to include budget airlines because low cost providers are not willing to pay commissions to secondary retailers.

Under its payment per purchase model, Aviasales is paid a fee of around 2% per ticket found using the service and bought within 30 days.  

In the Russian market Aviasales, according to iTech Capital’s press release, is the leading travel metasearch service, ahead of Skyscanner, Kayak and Momondo. The site attracts more than 4 million monthly users, who carry out more than half a million searches every day. 

Mobile platforms are a priority for the company, whose app is preinstalled on all Alcatel, Qumo and Texet smartphones, and they claim that 27% of all search requests come from a mobile device. 

In addition to its flight search service, Aviasales is also actively developing Hotellook, a hotel search service which allows users to compare prices. The number of users is increasing by as much as 50% every month. 

Aviasales, which has its head office on Phuket, an island off the coast of Thailand, is increasing its presence outside of Russia under the name JetRadar. The service currently operates in 13 countries and is used by over a million travellers every year. Its main foreign markets are Australia, Germany and the United Kingdom. 

The money will go towards developing the Aviasales, Hotellook and JetRadar services, as well as the company’s partner advertising agency Travelpayouts

Konstantin Kalinov, Founder - Aviasales

Our partnership with iTech Capital will allow us to maintain rapid growth in a highly competitive market. At the moment Aviasales is growing at more than 100% per year and it is the main search service in the travel sector, ahead of major international projects. 

Ilya Balandin, investment manager - iTech Capital

Aviasales offers a service for which there is strong demand - quick and easy comparison of flights and hotels from different sources. We hope that Aviasales will be able to take advantage of synergy with our other projects in the online marketing and ticket sales sectors in order to grow even faster. 

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