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Prosus buys Despegar for $1.7 billion, taking a bite out of Latin America’s travel sector
Yet another major investment is going down in the travel sector, underscoring its ongoing rebound after the Covid-19 pandemic. Prosus, the tech conglomerate controlled by Naspers, is paying $1.7 billion to acquire Despegar, one of the biggest online travel agencies in Latin America, to scale up its operations in the region.
Despegar’s board of directors has approved the deal, which will now go through regulatory processes before being finalized. Other backers over the years included Accel, Tiger Global, Sequoia, hotel giant Accor, TPG and even Yahoo (parent company of TechCrunch).
In this transaction, Prosus is gaining a significant foothold in Latin America’s travel sector. Despegar has been active in 19 different markets across the region, offering both direct-to-consumer services and a white-label solution used by banks, airlines, and other retailers selling travel services to their customers.
The company has adapted to modern trends and developed an conversational chatbot called Sofia. In its last year’s results, Despegar revealed that it has handled 9.5 million transactions annually, translating to $5.3 billion in gross bookings, $706 million in revenue, and EBITDA of $116 million.
This acquisition is expected to be a major milestone for Prosus, further solidifying its position as a leading player in the global travel industry.
Source: techcrunch.com
