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(Reuters) – U.S. corporate travel and expense company TripAction said it raised $304 million from investors in equity and debt-like structured financing on Wednesday, as the company gears up for expansion and a public listing.
The company said the funding includes $154 million in equity financing from investors including Andreessen Horowitz and Premji Invest, which valued the startup at $9.2 billion, up from its last round of $7.5 billion. The $150 million structured financing comes from Coatue Management’s new fund targeting late-stage startups as the IPO market remains shut.
TripAction’s business has rebounded from the pandemic as corporate travel resumes. It says gross bookings in its most recent quarter were up more than 500%. The company has filed confidentially for an initial public offering (IPO) that could land next year, sources told Reuters.
The company said it has no specific timing on a public listing.
“We view the raise more as insurance for us to continue to be very aggressive right in the face of this uncertain market,” said Thomas Tuchscherer, chief financial officer at TripAction. “We are investing for the company to be ready to be a public company.”
TripAction competes with American Express (NYSE:AXP) Global Business Travel and SAP Concur. The company says it plans to expand its sales and marketing in the United States and Europe and build out more product features.
The investment is one of the first announced deals from Coatue Management’s $2 billion Tactical Solutions fund, which provides maturing startups alternatives to an equity raise during a market downturn.
Tuchscherer said the note it raised from Coatue does not convert into equity and has no covenants. It is senior to equity investments but junior to existing lenders and debt facilities the startup holds.
“This is a solution that’s primarily targeted at late-stage growth companies. It is less dilutive and buys them time to allow the IPO markets to open back up or to do M&A,” said Dan Rose, chairman at Coatue Ventures.
