Rocketrip, a SaaS technology platform that reduces travel expenses for companies by incentivizing employees to be cost-conscious, announced today that it raised $9 million in a Series B funding round led by Bessemer Venture Partners with participation from its existing investors Canaan Partners and Genacast Ventures. The financing will be used to fulfil the company’s rapid growth and to beef up sales efforts.
Rocketrip has a proprietary algorithm that determines a “Budget to Beat” benchmark by looking at real time pricing information for hotels, rental cars, flight tickets, and other travel necessities while also taking into account each company’s individual budgetary policy for business travels. If employees spend below the budget for a trip, they split the savings with their employers in the form of reward points that can then be redeemed for items such as gift cards, cash cards, and frequent flyer programs. According to data provided by Rocketrip, their clients have saved more than $1 million on corporate travel expenses in the first three months of 2016.
This win-win formula is clearly welcomed by companies who have frequent travel needs for business. According to Dan Ruch, CEO and founder of Rocketrip, their corporate customers typically spend anywhere from $2M up to several hundred million dollars on travel each year. Since its launch in 2013, Rocketrip has signed on a slew of big employers such as Wayfair, Opower, and other Fortune 500 companies. It has also recently struck a partnership deal with Virgin America who will be the featured airline provider and sponsor of employee reward points.
Ruch is confident about the company’s progress so far and its prospects for the future. In an statement that went out today, he said, “at this point, we have a proven product-market fit, a scalable business model, strong industry partners, and support from outstanding investors. This funding round enables us to focus on continued exponential growth.”
Previously, Rocketrip raised $3 million from its A-1 round and $2.6 million from a Series A round in January 2014, both were led by Canaan Partners and Genacast Ventures.