In a strategic play that will give it access to new technologies and fresh funding to compete against global OTAs in its home market, leading South Korean online travel agency Tidesquare has taken in an investment of 50 billion won (US$44.3m) from Kakao, the operator of Korea’s dominant messaging app; Dunamu, Kakao’s fintech arm; and Singapore-based KCA Capital Partners.
Min Yoon: Tidesquare to focus on developing a personalised travel solution.
Tidesquare CEO and founder Min Yoon said the latest round of investment would enable the company to develop and deploy the latest technology in response to the growing share of global OTAs in the Korean market.
Each of the three new investors possess specific technologies and skillsets within their industries.
Kakao is South Korea’s largest Internet company and its KakaoTalk, with 44 million active users, offers not only communications but also all services related to daily life – from content search and order to reservation and purchase, it is evolving into a lifestyle platform.
This investment will provide an opportunity for Kakao and Tidesquare to initiate a plan to improve user convenience within the travel industry.
Kakao’s move into travel mirrors that of LINE’s investment in Japan’s travel metasearch site, travel.jp, which now operates under the brand of LINE travel.jp.
Founded in 2012, Dunamu operates the cryptocurrency exchange Upbit as well as Social Trading Stock Exchange, Kakao Stock.
Min Yoon said Tidequare hopes to leverage Dunamu’s insight and expertise as the operator of Upbit for unparalleled data and block chain technology.
With KCA Capital Partners’ base in Singapore, Tidesquare plans to tap into the fund’s strong network in South-east Asia to strengthen its global competitiveness. KCA Capital Partners invests in companies with differentiated technologies and products, focusing on high end manufacturing, consumer goods, healthcare, telecommunications and media companies.
As the fastest growing South Korean online travel agency Tidesquare, which operates Tourvis and Hyundai Card PRIVIA Travel, has been responding to rapid changes in the industry through investments in travel startups such as Playwings, Kyte and Allstay.
“The Korean travel industry has undergone drastic changes over the past few years due to rapid digitalisation trends and the entry of global OTAs,” said Min Yoon. “Tidesquare has responded to changes through active investment into the technological infrastructure for online travel within air, hotel, tour & activities and will focus on developing a personalised travel solution.”
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