KDS, provider of online business travel management solutions, announced that it has attracted EUR 11M (USD13M) in venture financing…
KDS, provider of online business travel management solutions, announced that it has attracted EUR 11M (USD13M) in venture financing from international investors Accel Partners and Atlas Venture. The funds will be used to accelerate the company`s international expansion and to cement further its position as the provider of choice in corporate travel.
KDS is the pre-eminent provider of online corporate travel solutions in Europe. More than 4,000 companies use KDS`s software solutions, including Shell, British Petroleum, Henkel, Alcatel, Accenture, Cap Gemini, Yahoo! and many others. KDS has helped many Global companies cut their travel budget by 10 to 20 per cent, resulting in up to 0.5% improvement to the bottom line. To serve these global customers, KDS has partnered with leading travel companies, such as Carlson Wagonlit Travel, American Express and the Cendant Group.
Both the substantial value of this round of financing and the quality of the investors represent a source of immense satisfaction for KDS, said Yves Weisselberger, CEO of KDS This financing comes at a time when the corporate travel self-booking market is booming. It will allow KDS to further leverage its technological and market leadership by growing its presence in all major countries.
The travel market is undergoing significant business and technological change. With the European online travel solutions market expected to increase 6-fold in the next three years, there is a clear opportunity for KDS to secure a pre-eminent position as the trusted provider of solutions to its customers and partners, added Harry Nelis from Accel Partners.
KDS` customers are real fans. This demonstrates the deep understanding of the travel software market that the KDS team has developed over the years and the unique opportunity the company has to dominate its sector in the coming years commented Fred Destin of Atlas Venture.
Some large corporations use KDS services to book more than 90% of their trips online. By doing so, they make sure they get the best fares available and benefit from the reduced online transaction prices now offered by most Travel Management Companies.
In 2005, business has been extremely brisk for KDS. The rate of travel bookings made via KDS, during the first months of the year, has tripled versus the same period in 2004. The company is also signing twice as many contracts as last year. With a high proportion of recurring revenues, this provides KDS with a stable base for growth.
SAGAX (Greenwich, Connecticut), an investment company and financial adviser to KDS, also participated in the round. As a result of the transaction, Harry Nelis of Accel and Fred Destin of Atlas Venture will be joining the Board of KDS.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
