Hopper takes $170 Million in deal led by Capital One


Hopper, the Montreal and Boston-built travel app, has raised $170 million in capital through Capital One. As part of the deal, Hopper will launch a travel booking portal for cardholders, called Capital One Travel, powered by Hopper.

New and existing investors joined the funding deal, including GS GrowthInovia CapitalWestCap Group, and Citi Ventures.

Hopper’s travel-focused app uses an artificial intelligence-powered algorithm to make pricing predictions and travel recommendations for users.

The new deal comes on top of the US $253.6 million the company has already raised. Hopper wrote Wednesday that it achieved triple-digit revenue growth in 2020, despite the challenges that the pandemic presented.

“This is largely due to our product innovation, as now more than ever, travellers want flexibility and more control over their itineraries,” says the company.

Spring money

Hopper previously faced scrutiny after an article by The Logic detailed scores of customer complaints against the travel-tech darling.

Since “quietly raising $70 million [USD] last spring,” Hopper wrote Wednesday that it focused on a few areas for improvement. That includes customer service, where the company says it addressed the large volume of requests brought on by the pandemic. In the last two quarters, Hopper says it has scaled its customer support team by 180%.

The company added new categories to its app like car rentals and alternate accommodations. Users can now manage cancellations, changes, future travel credit (FTC) redemption, and insurance claims/resolutions.

RELATED: Montreal travel app Hopper raises nearly $100 million

Capital One Travel

As part of the $170 million deal, Capital One Travel will be a customer booking experience built for Capital One cardholders.

It will launch in the second half of 2021, when Hopper expects travel to make a return.

Capital One Travel will “offer a new and innovative way to book travel, including benefits designed specifically for cardholders as they get back to traveling later this year.”

Well-funded company

CEO Fred Lalonde and his company sure know how to raise money from investors. Prior to the new funding, Hopper had raised US $253.4 million, or about CA$357 million all-time.

In October 2018, the company raised  one of the largest VC deals in Canadian history: a $100 million in Series D capital from a group led by Omers Ventures.

And before that, in December 2016, Hopper raised $82 million in funding. That deal was led by the Caisse and with prior investors including Brightspark Ventures, Accomplice, OMERS and BDC Capital.

In March 2016, the company raised $16 million.

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