Business-to-business travel startup Distribusion Technologies raised 6 million euros ($6.77 million) in funding from Northzone, Creandum, HR Ventures and returning investor Frühphasenfonds Brandenburg. Based in Berlin, Germany, Distribusion’s technology enables intercity bus operators to partner with travel resellers.
Distribusion Technologies (www.distribusion.com), the leading GDS for intercity and shuttle bus products, announces it has raised 6 million EUR funding from international investors Northzone, Creandum and HR Ventures. Existing seed investor Frühphasenfonds Brandenburg as well as industry-specific business angels complete the finance round.
Focus on global expansion and product development
The funding will be used to accelerate the product and technology development and to ramp up the acquisition and integration of new bus operators and resellers. In addition, Distribusion will push market coverage across Europe and expand their business operations to the major intercity bus markets in South America and Southeast Asia. For this purpose, the teams in Berlin and Bonn will be tripled by the end of 2016.
Bus operators and travel industry benefit from innovative GDS
Distribusion already works with major European mobility and travel brands and increased its portfolio fivefold in the last six months. Today, the company provides 2 million bookable rides of more than 60 bus operators covering 25 countries to online resellers and travel agencies worldwide. This makes the company the largest distribution platform for intercity bus rides.
With its innovative technology, Distribusion enables intercity and shuttle bus operators for the first time to connect to a wide-ranging worldwide reseller network of travel websites, OTAs, travel agencies mobility apps. In doing so, bus operators lower their partnership management costs and increase ticket sales at the same time. Meanwhile resellers benefit from getting extensive bus products through a single system.
Distribusion backed by European top investors
Founder and CEO Julian Hauck explains: “Considering the high interest in this round, with Creandum and Northzone we are excited to win two of Europe’s most successful investors for our mission. With their support, we will be able to grow our team and to roll out our GDS on a global scale.”
Tim He, Principal at Northzone comments: “Distribusion is revolutionizing intercity bus travel. With their innovative technology and business model serving both bus operators and travel agents, they are in a strong position to take on the fragmented intercity bus market globally. I have been hugely impressed with what they have achieved to date, and I am delighted to be partnering with their ambitious management team.”
„It sounds like a cliche, but we at Creandum are all about backing the best entrepreneurs across Europe. We’re excited about Julian and Johannes’ vision, and what they’ve been able to accomplish – Distribusion is having a major positive impact on bus operators, resellers, and consumers,” says Sabina Wizander at Creandum.
Ertan Can, Director at HR Ventures, the venture capital company of Hahn Air, says: “We are deeply impressed by the performance of Distribusion and how they captured the European market. The company is changing intercity bus distribution for the better and is setting new standards in the industry.”
Alongside the venture firms, travel industry experts Thomas Döring, Chris Hitchen, Richard Chen, Bo Mattsson and Marc Mogalle are participating as business angels in the investment round.
About Distribusion Technologies
Distribusion develops the leading global distribution system (GDS) for intercity bus and shuttle rides. The Berlin based travel tech startup connects travel resellers such as travel websites, OTAs, travel agencies and tour operators with intercity bus operators worldwide. Distribusion provides 2 million bookable rides of more than 60 bus operators covering 25 countries to online resellers with more than 10 million unique visitors per month and to 4.000 travel agencies worldwide. Bus operators benefit from a full booking solution including rides management, distribution, ticketing, payment, billing and encashment.
Founded in 1996, Northzone is a technology investment partnership. To date, it has raised seven funds and invested in some 120 technology-enabled companies. The current portfolio includes companies such as Spotify, Trustpilot, Lesara, MarketInvoice and SpaceApe. Northzone has offices in London, Stockholm, Oslo and New York. For further information, visit www.northzone.com.
Creandum is a leading European venture capital investor, focusing on innovative and fast-growing technology companies within consumer, software and hardware industries. The Creandum funds have over €400M under management and are advised by the Creandum Advisory companies with offices in Stockholm and Palo Alto. Creandum funds have over the last decade invested in more than 50 companies including Spotify, Tictail, iZettle, and Vivino. For more information, please visit www.creandum.com.
About HR Ventures
HR Ventures (www.hrventures.de) is the venture capital company of the Hahn Air group based in Dreieich, near Frankfurt am Main, Germany. Founded in 2012, HR Ventures focuses on early-stage investment in cutting-edge and scalable technologies in the TravelTech sector.
About BFB Frühphasenfonds Brandenburg GmbH:
BFB Frühphasenfonds Brandenburg GmbH (Frühphasenfonds Brandenburg) invests in young, innovative companies in the state of Brandenburg, with the goal of strengthening these companies’ equity base in their early stages. The fund, which has a volume of €25 million, was designed and set up by the “InvestitionsBank des Landes Brandenburg” (ILB) on behalf of the Ministry of Economy and European Affairs of the State of Brandenburg (MWE). The funding capital is provided by the European Regional Development Fund (ERDF) (75%), the budgetary resources of the State of Brandenburg (20%) and by bmp Beteiligungsmanagement AG (5%). bmp (www.bmp.com) is tasked with the management of the fund. The fund’s current portfolio includes a total of 21 companies from the state of Brandenburg. (www.fruehphasenfonds-brandenburg.de)
With a background of experience of more than 250 investments in almost all technology segments, the majority of which were early phase, bmp is one of the most experienced venture capital investors in Germany. In addition to direct investments, bmp’s activities also include managing risk capital funds for KfW Bankengruppe and DEG – Deutsche Investitions- und Entwicklungsgesellschaft. Besides the Frühphasenfonds Brandenburg bmp currently manages the IBG fund in Saxony-Anhalt and the VC portfolio of bmp Holding. (www.bmp.com)