There is another sign of a boom in the travel industry. It's a major funding round by one of the B2B startups serving the travel industry. Lighthouse, a data analytics platform for hotels and other hospitality industries, has closed a $370 million Series C round. The KKR-led funding round valued Lighthouse at more than $1 billion.
Lighthouse said it will use the funding to continue building out more datasets, analytical tools and AI capabilities. The company may also be using this large capital injection to make acquisitions to expand its business, with the company having made four acquisitions so far. One of them, Stardekk, sprung up earlier this year and brought Lighthouse an all-in-one hotel software for things like reservation management.
At $370 million, the round is one of the largest for a London-headquartered startup, and one of the largest for the travel industry this year.
For those tracking how the European startup ecosystem is currently working, Lighthouse's funding track record is instructive. The company raised $80 million in 2021, when startup funding was at its peak. This new round can be seen as confirmation by investors that the startup has been doing the right checks over the past few years.
European startups are grappling with slowing activity in many technology subsectors, geopolitical turmoil, and slowing economic growth. Lighthouse caters to the global travel market, currently estimated to be worth approximately $15 trillion annually, and is focused on delivering business intelligence while applying new technologies such as AI. , highlighting how data-driven companies continue to discover opportunities.
The company's core toolset itself isn't directly related to taking reservations or managing staff or accounts. Instead, it provides business intelligence, specifically analytics and insights. Lighthouse says it processes 400 terabytes of travel and market data every day and “leverages AI” to provide insights to its customers. The company's products target large hotel chains and others focused on smaller operations.
The company says its tools are used by more than 70,000 hospitality providers, including major companies such as Holiday Inn, Radisson and NH Hotel Group.
This round is proof that the hotel industry is looking for better tools to improve pricing and overall customer service, and travelers have more choice than ever before. This is especially important now that there are more ways to find and book.
“We are just beginning our journey to make hospitality data and tools more powerful, accessible and affordable,” Lighthouse CEO Sean Fitzpatrick said in a statement. “I couldn't be more encouraged about what we're aiming for.” TechCrunch will likely speak with Fitzpatrick later today to learn more.
The company's previous round included participation from Spectrum Equity, F-Prime Capital, Eight Roads Ventures, and Highgate Technology Ventures, all of whom also invested in this latest Series C.