“We can now do the deals we want to do,” says CEO Stephan Ekbergh
Travelstart, Africa’s leading online travel company, has taken on a new investor in the form of global private markets investment firm HarbourVest in a move that CEO Stephan Ekbergh says gives it access to capital to realise its goal of conquering Africa.
HarbourVest, an independent, global private markets investment specialist with 36 years of experience with more than $58 billion in assets under management, has taken over the equity held by MTN which has been divesting of non-core assets under its Asset Realisation Program.
Stephan Ekbergh: “Now in 2019, we are ready to conquer Africa.”
“The new arrangement means we have exchanged one shareholder for another and it has given us access to an active investor who wants to fund our business plan going forward in regards to acquisitions, especially in Africa as well as the Middle East,” said Ekbergh. “We now have access to capital we didn’t have before and we are able to present deals we want to do.”
These deals include those that can increase its geographical scope, give it access to different verticals such as packaged travel and hotels, and new customer segments such as corporate travel, government travel and bus travel, said Ekbergh.
HarbourVest has more than 500 employees, including more than 125 investment professionals across Asia, Europe and the Americas. This global team has committed more than $35 billion to newly formed funds, completed over $19 billion in secondary purchases, and invested over $9 billion directly in operating companies.
MTN and Travelstart will continue its commercial relationship. Amadeus Capital Partners, which jointly invested in Travelstart in 2016 with $40 million, remains a shareholder.
Travelstart currently owns SafariNow, a low to mid family type accommodation and low cost safari operator, as well as NightsBridge, a bed & breakfast and guesthouses marketplace.
Travelstart has also been expanding into the Middle East but Africa, its home market, remains its core priority and of the two, Ekbergh clearly considers Africa the more exciting region. “In Africa, everything is up for grabs, there are no roads and we have to build the roads. In the Middle East, the roads are already built, and they are now paving the roads.
“Africa clearly has the larger travel ecosystem, and we are expanding into more verticals and more countries,” said Ekbergh.
Asked which market was the most exciting, he said, “South Africa is the mothership of the continent but Nigeria is quite exciting and we are doing a good job there. You have to own those two countries before you can say, you own Africa.
“Owning those countries also means owning the domestic market. South Africa has a big domestic market – Capetown to Johannesburg is the 10th most trafficked route in the world.”
Ekbergh said clearly the years ending with a 9 were turning out to be significant for Travelstart. It was founded in 1999, and in 2009, it sold its Scandinavian business to focus on Africa. “Now in 2019, we are ready to conquer Africa.”
• Featured image credit: adogslifephoto/Getty Images
