Onfly, a bold platform dedicated to managing business travel, *announces a funding round of $40 million* to revolutionize the sector in Latin America. The modernization of business travel represents a colossal challenge in a region where traditional agencies remain largely *disconnected*. With explosive growth, Onfly aims to capitalize on this opportunity to extend its influence in an underdeveloped market where the adoption rate of digital technologies remains abnormally low.
| In summary |
|---|
| Onfly raised $40 million in Series B to expand its operations in Latin America. |
| The platform allows companies to manage business trips, accommodations, and expenses. |
| Onfly, founded in 2018, has experienced rapid growth, doubling each year. |
| The company expects an annual revenue of $250 million by 2025. |
| It currently has over 2,000 clients, including companies like Vivara and Hotmart. |
| Onfly also aims to expand into Mexico, Colombia, Argentina, and Chile. |
| Part of the funding will be dedicated to developing technology and integrating AI. |
| Onfly aims to increase its offerings of short-term rentals in cities like São Paulo. |
| The company currently employs 550 employees and plans to reach 700 employees this year. |
Significant Funding Round
Onfly, a business travel management platform based in Latin America, has recently succeeded in raising $40 million in a Series B funding round. This substantial amount will enable the company to accelerate its development and expand its footprint in the market. The need to modernize the business travel sector in Latin America is a major issue attracting the attention of investors.
Features of the Onfly Platform
With Onfly, employees of client companies can book various means of transportation and accommodation. This platform provides access to flights, hotels, buses, rental cars, as well as short-term rentals. Additionally, prepaid payment cards can be issued to employees, facilitating the management of expenses.
Opportunities in the Latin American Market
Marcelo Linhares, CEO and co-founder of Onfly, emphasizes that the region holds significant potential for technological solutions. Traditional business travel agencies remain largely disconnected, creating an urgent demand for digital services. The speed at which countries like Europe and the United States adopt digital systems has no equivalent in Latin America.
Investments and Growth Projections
The business travel market is experiencing unique dynamics, as evidenced by Tidemark’s decision to invest in Onfly. Drew Patterson, a venture capital partner at Tidemark, mentions a current market share of barely 2%, foreshadowing a promising future for Onfly in a segment that is still relatively unexplored.
Onfly, founded in late 2018 in Brazil, anticipates annual sales reaching $250 million by 2025. The company has demonstrated exponential growth with a compound annual growth rate of 110% over the past four years.
Clients and User Experience
More than 2,000 client companies, including Vivara, PicPay, and Hotmart, benefit from its services. Many clients report a radical transformation, shifting from 90% offline bookings to 90% online bookings. This transition showcases Onfly’s ability to revolutionize the way companies manage their business travel.
Competition in the Business Travel Sector
Competition is also present in this field, with other startups like Mendel recently raising $35 million. Onfly must navigate an environment where investments in business travel are attracting attention. The enthusiasm for technology in this industry signals promising future prospects, especially compared to post-pandemic stagnation.
Geographic Expansion and Technological Development
Currently focused on Brazil, Onfly plans to expand to other Latin American countries, particularly Mexico, where the company aims to add 2,500 clients by 2027. Onfly’s roadmap also includes potential opportunities in Colombia, Argentina, and Chile.
The recently raised funds will serve to strengthen technological capabilities, particularly the integration of AI. A new expense management tool, utilizing this type of technology, has been implemented to detect fraud.
Human Resources and Growth Ambition
With a team of 550 employees, including 150 developers, the company aims to reach 700 employees by the end of the year. This sustained growth model is accompanied by a desire to deepen offerings, particularly regarding short-term rentals, with the goal of adding 5,000 units in São Paulo by 2025.
