Trip360

Trip360

Early Stage

Seamless and personalized customer journeys for travel brands

Seamless and personalized customer journeys for travel brands

Overview

Raised to Date: Raised: $59,950

Total Commitments ($USD)

Platform

Republic

Start Date

03/04/2021

Close Date

04/29/2021

Min. Goal
$25,000
Max. Goal
$1,070,000
Min. Investment

$100

Security Type

SAFE

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap

$7,500,000

Discount

15%

Rolling Commitments ($USD)

Status
Funded
Reporting Date

05/01/2021

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$1,071

# of Investors

155

Momentum
Funded
Create a free account today to gain access to KingsCrowd analytics.
Year Founded

2020

Industry

Travel and Hospitality

Tech Sector

AutomationTech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

Low

Location

New York, New York

Business Type

Growth

Trip360, with a valuation cap of $7.5 million, is raising funds on Republic. The platform helps airlines, hotels, travel distributors, and other travel brands to improve their customers’ experience and increase revenue. It makes the travel companies offer travel bundles. Avi Amar founded Trip360 in October 2020. The current crowdfunding round has a minimum goal of $25,000 and a maximum goal of $1,070,000, and the proceeds will be used for customer acquisition and worldwide expansion. Trip360 has generated over $700,000 in revenue in the past twelve months, with a 125% year-over-year revenue growth in 2020. The company plans to expand to eight countries by the fourth quarter of 2022.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$115,954

$0

COGS

$0

$0

Tax

$1,898

$0

 

 

Net Income

$9,053

$-766

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$83,739

$48,620

Accounts Receivable

$81,086

$0

Total Assets

$184,527

$48,620

Short-Term Debt

$176,240

$49,386

Long-Term Debt

$0

$0

Total Liabilities

$176,240

$49,386

Financials as of: 03/04/2021
Create a free account today to gain access to KingsCrowd analytics.

Upgrade to gain access

Pay Monthly
Annually (Save 17%)

Edge

$25 /month
billed annually
Free portfolio tracking, data-driven ratings, AI analysis and reports
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings and analyst reports
Deal explorer and side-by-side comparison
Startup exit and failure tracking
Startup market filters and historical industry data
Advanced company search ( with ratings)
Get Edge Annual
Already a member? Log in here.

Ratings KingsCrowd Startup Rating Methodology Article

Blurred Ratings Bars Blurred Ratings Bars

Analyst Report Analyst Report Methodology Article

Synopsis

Today, much of the booking and related activities for the tourism industry can be done online in a simple and easy manner. This evolution of traveling has led to significant opportunities for the companies involved in helping customers begin their vacations, but there is no similar online process covering the post-booking experience. When it comes to local sightseeing, visiting restaurants, and so many other activities that tourists engage in, there has been no unified, concierge-like service for the masses until now.

One company looking to change this space is Trip360. As its name suggests, the platform is dedicated to providing a comprehensive experience for travelers. In turn, it also offers opportunities for those companies that service travelers. Through its app, Trip360 aims to offer planning, booking, and guidance services to travelers. These services are offered, in large part, through bundling different experiences that tourists might find appealing, similar to how an airline will encourage bundling a car and/or hotel. Trip360 takes this to the next level by allowing other services to be bundled at various stages, from the pre-planning of a trip through the time you return home.

Trip360 is also baking in various social features to make its app more interactive. Examples include allowing users to upload images, videos, reviews, and more. Using a consumer’s individual preferences, the platform also creates personalized recommendations and provides relevant destination-related information. Details about the weather and COVID-19 alerts are also planned. Trip360 claims that, along with its advanced personalization, it will improve the efficiency and customer insight for related businesses. 

Trip360 has a few ways that it intends to monetize this platform. First, it plans to charge a commission for on-platform transactions. It also believes it can generate revenue from platform affiliate fees. It expects travel brands will pay fees for generating a journey for their customers. For example, an airline with 20 million passengers per year could generate between $0.10 and $1 per journey. Trip360 also has plans for marketplace subscriptions that will allow businesses to show personalized offerings on their feed as well as support subscriptions. These will allow travel brands to provide high-level support for their customers. It is also worth noting that the company has plans to expand to eight countries by the fourth quarter of 2022.

Trip360’s current Republic raise has been rated a Neutral Deal by the KingsCrowd investment team.

Next Section: Price

Price

Trip360 is offering a SAFE that will convert into equity in the future subject to a 15% discount on the future value of the firm. The security will also have a valuation cap on it of $7.5 million. This valuation is reasonable both in terms of a revenue multiple for Trip360 and in comparison to other startups currently raising capital. 

Next Section: Market

Market

Broadly speaking, the tourism market is vast. In 2019, there were 1.46 billion travel departures across the globe. In monetary terms, this is significant. In 2018, the global leisure travel market was valued at $953.9 billion. This is expected to grow at a rate of 5.6% per annum, climbing to $1.46 trillion by the end of 2026. A second source estimates the global market at just over $1 trillion in 2019. Its forecast is for the space to grow at a rate of 22.6% per annum from 2021 through 2027 as the industry recovers from a rough year in 2020. If this holds true, it would take the market value to $1.74 trillion by 2027. Due to the large travel market and its high growth rate, Trip360’s market score is its highest across all five metrics.

Next Section: Team

Team

Based on the data provided, the team managing Trip360 appears solid. Take Avi Amar, the company’s lead founder and its CEO. Prior to starting Trip360, Amar founded a firm called Reachix, which focused on helping companies build their social media presence. That business was acquired by Trip360. Before that, Amar served as the vice president of digital and product at ISSTA. That firm focused on digital and mobile strategy as well as product management and people management services. Prior to that, he founded Groupunch and Divine Networks. The role he held before founding these firms was CTO at Telespear Technologies. Before that, Amar was head of web development at SimiGon. Another position he held previously was that of team leader of software engineering at Philip Morris. At these firms, Amar clearly picked up leadership experience, and his positions at Philip Morris and at ISSTA illustrate technology-related skills. 

The other key person at and co-founder of Trip360 is Effi Shmilovitch. At this time, he is also the company’s CTO. Like Amar, Shmilovitch was a co-founder of Reachix. He, too, worked at ISSTA, where he served as a development team leader. Before that, he was a software developer at Codeo. Having both leadership experience and technological experience is excellent for a CTO position. 

Because of the experiences of these two co-founders, Trip360’s team score is above average.

Next Section: Differentiators

Differentiators

In some respects, Trip360 is very much like many of the other travel sites out there. Yes, the app itself is complementary to the space. Management makes this all too clear by offering a white label version of the app to travel brands. However, at the end of the day, it is a tourist logistics platform. That is not to say, though, that the company is not differentiated from the competition at all. The firms that it is most like are still quite different from it in its current incarnation. Tripit and TripCase, for instance, don’t offer a personalized journey or bundling of options, but they do provide communications and content. Journera offers personalized journeys and bundling but not much else, and Bridgify offers most of what Trip360 does. The exception boils down to self-service support, tools, and communications capabilities. In short, Trip360 should be viewed as something of an aggregation of the best that these platforms offer. This is, in a way, a form of differentiation of sorts, though it has low defensibility. Taken all together, the differentiators score for Trip360 is just above average.

Next Section: Performance

Performance

When it comes to performance, Trip360 has fared quite well. In 2018, the company generated nothing in the way of revenue, and its net loss was $760. In 2019, revenue was $115,954, and net income was $9,053. The company’s operating cash flow in 2019 was $36,379. No official financial data has been provided by management for 2020. However, Trip360 claims that in the past 12 months, it generated more than $700,000 in revenue. Outside of financials, the company has already landed agreements with Booking.com and Tripadvisor. It also claims to have at least 30 content partners at this time, but specifics on those have not been provided. Thus, Trip360’s performance score is above average.

Next Section: Bearish Outlook

Bearish Outlook

Investors who are considering Trip360 should be aware of all of the bearish considerations involved. For instance, it should not be shocking to find out that the travel industry is in the doldrums right now. Times are hard for everyone exposed to the space. That does create some extra risk for this company. In addition, the market prospects look questionable largely due to the competition out there. Adding in the threat that competition could always step in and adopt the Trip360’s ideas, investors should definitely be cautious.

Next Section: Bullish Outlook

Bullish Outlook

On the bullish side though, there are plenty of things for investors to be excited about. Trip360’s team here is solid. The price for participating in this round is probably more or less appropriate, and the traction the company has seen, especially if its latest revenue figure is accurate, is very encouraging. There’s also the fact that the travel industry is already very large and still growing. This could lead to some nice additional advantages in the long run.

Next Section: Executive Summary

Executive Summary

Taking all parts of this opportunity together, it appears as though Trip360 is an intriguing prospect. The company intends to give travel brands a way to improve customers’ experiences while earning more money in the process. The platform certainly has potential if things go well, but it is undeniable that there are real and potentially significant risks facing it. Balancing these factors, Trip360 is a Neutral Deal at this time.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com

Analysis written by Daniel Jones.

Founders: enhance your startup's credibility on KingsCrowd. Create an account to claim this raise page.

Create your first portfolio

Create your own startup investment portfolio on KingsCrowd.

Track all of your startup investments in one place using our state-of-the-art portfolio tracker tools. To begin, create your first portfolio below.

Add to portfolio
Trip360 on Republic
Platform: Republic
Security Type: SAFE
Valuation: $7,500,000

Follow company

Follow Trip360 on Republic

Buy Trip360's Deal Report

Warning: according to the close date for this deal, Trip360 may no longer be accepting investments.

Trip360 Deal Report

Get KingsCrowd’s comprehensive report on Trip360 including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Trip360 is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Trip360 deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge