Canadian travel app Hopper has raised a $170 million Series F funding round, led by Capital One. GS Growth, Inovia Capital, WesCap Group and Citi Ventures have also participated in the round.
The investment is part of Hopper’s new partnership with Capital One to strengthen the “Capital One Travel” platform that helps cardholders book flights, hotels and cars. This platform is expected to be released in the second half of the year.
Last March, Hopper raised $70 million in a funding round.
Founded in 2007 by Frederic Lalonde and Joost Ouwerkerk, Hopper was initially not doing what it currently does and was selling airline tickets on a mobile basis. However, the company is currently serving as a mobile app that uses big data to predict and analyze airfare and accommodation. Hopper provides passengers with the information they need to get the best deals on flights and hotels, and keeps people informed when prices reach their predicted lowest points.
“The real fundamental sea change is that Hopper moved away from being a predominantly air travel company to a true fintech,” Frederic Lalonde explained in an interview. “Price freeze is a good example. We allow you to come in and hold the price of a booking for between two hours and 14 days. If the price goes up you pay what you froze, and if it goes down you pay the lower price. We have flexible date plans, cancellation plans, where you can take a non-refundable, non-changeable ticket and for a nominal fee, make it changeable. And one that’s working really surprisingly well is the disruption insurance.”
Using Hopper’s disruption insurance , if you happen to miss a connection on a multiple-leg flight, whatever the reason, you will be presented with every flight leaving that particular airport, regardless of airline, to your destination and you can select an available option at no additional cost.
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Although Hopper received investments during the pandemic period, the company had to lay off 45 percent of its workforce during this period. However, co-founder Frederic Lalonde says travel services are currently slowly recovering and the company will return to its original form soon.
In addition, Hopper reported a triple-digit revenue increase last year, and in the last two quarters its customer service team grew by 180 percent to meet the growing demand for its services.