Amid tourism slump, TripActions raises $125 million in convertible-to-IPO financing

TripActions Inc., a cloud-based corporate travel and expense management platform founded by two Israelis, announced Tuesday that it has raised $125 million in convertible-to-IPO financing led by Greenoaks Capital with participation from Vista Credit Partners, the credit-lending arm of Vista Equity Partners. The terms of the financing were not disclosed.

According to the company, the funding gives TripActions more flexibility to weather Covid-19 while accelerating investments in TripActions Liquid and expanding its global enterprise sales and European operations.

"Over the last three months we’ve seen enormous growth as enterprises switch to modern T&E management with TripActions, including three new large enterprise customers and rapid adoption of TripActions Liquid—adding $450 million in travel budget under management to bring our total to more than $2.8 billion despite Covid-19," said Ariel Cohen, co-founder & CEO of TripActions.

TripActions laid off hundreds of employees at the end of March due to the shutdown of the travel business during the coronavirus pandemic.

The company also announced Tuesday the expanding of its European operations with the hiring of Christopher Vik as senior vice president of Sales for EMEA.

Founded in 2015 by Cohen and Chief Technology Officer Ilan Twig, TripActions raised a $250 million series D round in June 2019 according to a company valuation of $4 billion. The round was led by Andreessen Horowitz, with participation from Lightspeed Venture Partners, Zeev Ventures, and Dov Frances’ Group 11. The company has raised over $480 million to date.