Selfbook raises $15M for $300M valuation in Tiger-led extension to give hotels a way to accept one-click payments – TechCrunch

Hotel payment software provider Selfbook has completed a $15 million extension to its Series A funding that values ​​the company at $300 million.

Tiger Global Management led the expansion, along with the company’s $40 million Series A in October. At that time, New York-based Selfbook was valued at $125 million – so it basically saw its valuation rise 2.4x from the fourth quarter of 2021 to the first quarter of 2022 and a 38x increase after having raised a seed round of 2 million dollars. in April 2021.

New strategic investor JAWS Estates Capital – family office of hotelier Barry Sternlicht – also put money in the extension. Sternlicht is co-founder and chairman of Starwood Capital Group.

“The first round was a quick process. We got it all up in a week,” said Khalid Meniri, co-founder and CEO of Selfbook. “And the second one was in one day because it was mostly an overflow from some of the investors who couldn’t show up in the first round.”

Founded in September 2020 as a hub from a consumer travel app to a B2B company, New York-based Selfbook describes itself as the “Shopify for travel” and says it operates at the intersection of the hospitality and fintech. Hotels can implement its technology, according to Meniri, “with a single line of code” to improve their booking experience directly on their existing reservation systems.

Selfbook says its software gives hotels a way to accept “one-click” payments directly on their websites while eliminating fraud and reducing chargebacks. The company says its software is the only payment technology for hotels that supports digital wallet usage, including Apple Pay, Google Pay, PayPal and buy now, pay later. It also supports traditional debit and credit card payments.

“We make it so they can install Apple Pay, Google Pay or BNPL with one integration,” Meniri said. “It can take at least 500 man-hours to integrate with a digital wallet because of all these hassles around cryptogram and MMR. But our proprietary technology already takes care of that.As well as enabling “one-click” payment, Meniri explains that Selfbook’s software also provides direct booking links and smart merchandising.

Although he declined to reveal concrete revenue figures, Meniri said the company’s customer base grew by about 100% month-over-month. He said that we could infer that revenue growth is directly correlated to user base growth, but that it could fluctuate depending on contract value. The workforce has increased from 5 last April to 70 today.

Currently, Selfbook has 30 live customers on its platform and nearly 100 integrated hotels, according to Meniri. The company makes money by charging a flat fee of 1% for all the transactions it helps facilitate. It is possible that Selfbook will increase this figure to 2% in the future.

Picture credits: CEO & Co-Founder Khalid Meniri / Selfbook/Michael Mundy

Initially, Selfbook focused on boutique or independent hotels or small groups representing between 5 and 25 properties. In the second quarter, he expects to work with some fintechs that wanted to be able to serve hotels but couldn’t due to limitations in legacy systems.

“By introducing our technology, these fintechs allow us to speak with larger chains,” Meniri said, “and that excites us from a growth and credibility perspective, while giving us market recognition with some of these large established public fintech companies supporting us, vouching for us, and acting as our vendors.”

This year, the company plans to launch an extension product called PayBox, which will allow it to install payment on existing payment flows.

“It will be really good for channels that already have a custom booking engine, and without replacing all of that, we will replace the payment flow,” Meniri explained.

Part of Selfbook’s value proposition, he says, is that it gives hotels a way to get guests booked directly. This translates to higher guest satisfaction and fewer cancellations, he added, leading to greater revenue for the hotel than if it booked with a third party.

“Our software is profitable,” Meniri said. “By using it, hotels can increase their direct revenue by 3-4%.”

“Hotels aspire to a direct dialogue with customers,” Meniri said. “They want to make it easier for their customers to add rooms or remove nights. They should be able to do this dynamically and automatically.

Alex Cook, Tiger Global Partner said Selfbook’s “plug-and-play” software “securely” supports multiple payment types and can be customized “to meet the unique needs of every hotel, from boutique hotels to global chains.”

“We wanted to double down on Selfbook after hearing the enthusiasm from their hotel customers and seeing the rapid and continued growth over the past few months,” he added. “We are excited to continue our partnership with the team at Selfbook as they streamline the hotel booking experience.”

My weekly fintech newsletter will be launched soon! Register here to receive it in your inbox.

Comments are closed.