Tech startup Traveltek has received a £5.3m investent from private equity fund YFM Equity Partners.
Traveltek’s software provides the technology to package together an extensive range of hotels, flights, cruises and ancillary travel services and is used by travel retailers, agents and wholesalers worldwide.
With a 250% increase in sales over the past four years, the East Kilbride-based travel management software developer is using the YFM investment to to further develop TravelTek’s market leading product, and accelerate its international office expansion across the globe. It already has offices in Scotland, England, Australia and the US.
YFM and Traveltek have been working on a growth plan which will see the existing international office network increase from four to 12 and staff numbers in the group from under 100 to c. 200 during the next three years.
As well as recruiting senior travel industry executives to the team, YFM has also introduced Kelvin Harrison as Chairman of the board. Harrison was previously the CEO of Maxima holdings plc in Glasgow.
TravelTek Group Managing Director, Kenny Picken said:
“We chose YFM based on its long history of working successfully with owner managed teams and growing businesses internationally. YFM’s investment will allow us to continue to develop our market leading position by accelerating our existing international office network as well as expanding our local Scottish headquarters to support this growth.
Nigel Owens, Investment Director at YFM added:
“TravelTek is the only fully integrated, technology focussed packaging solution for travel agents and travel operators in the world. We have been impressed by management’s commitment to fully understand its customers’ business and create market leading tailored solutions. The existing development of the international office network and TravelTek’s growth in sales is testament to the proposition and the existing management team we are backing.”
Traveltek specialises in building and maintaining bespoke booking systems for airlines, hotels, cruise ships, car hire, insurance and holiday operators. Many household travel trade names are clients, including Hay’s Travel, Trailfinders, Co-operative Travel, the Flight Centre, Emirates, Barrhead Travel, dnata, Imagine Cruising and World Travel Holdings UK. Founded by Kenny Picken in 2002, the business processes many millions of lines of data every day, and its systems underpin the day-to-day booking operations of a growing number of travel trade businesses across the world.