Bangalore-based travel information and review portal HolidayIQ has demerged out of Singapore-based OTA Wego and raised fresh round of funding from existing investors Accel Partners and Tiger Global. It had merged with Wego in 2010.
Though the stake holders did not comment on the quantum, a source privy to the development said the total investment is around Rs 30 crore ($5.5 million) led by Tiger Global.
This is the third round of funding for HolidayIQ. The first was in 2006 by Accel Partners and second round was by Tiger Global as it merged with Wego Pte Ltd.
Accel Partners has exited from Wego whereas Tiger Global retains shareholding in Wego while putting fresh money separately in HolidayIQ.
The fresh capital infused will be used for scaling up presence in India and for product development, said Hari Nair, founder and CEO, HolidayIQ.
Last year Wego launched its India-specific travel metasearch site Wego India.
According to Nair, in the past 12 months, the traffic at HolidayIQ had gone up to 4.5 million visits a month and in time both parties realised that they were growing well independently. “It was just a merger of services wherein shareholders of both companies became shareholders of the joint entity (in 2010). There was no money or stake involved in either the merger or the demerger,” Nair stated.
Nair also shared that HolidayIQ is not looking to become a transaction-based OTA anytime soon. “Media business is our focus and we will sustain that,” he said.
(Edited by Prem Udayabhanu)