Post creating havoc across various economies and halting down production and operations in vivid small- and large-scale industries during 2020, it looks like businesses are getting back on track after the coronavirus pandemic. In one such instance, a promising Berlin travel startup- GetYouGuide reportedly announced amassing revolving credit funds of USD 97 million to help it stay in the course to resume its business operations.
It has been speculated that the financing is being led by UniCredit, with participation of CitiGroup, Deutsche Bank, Silicon Valley Bank, and KfW.
In a statement released by the company’s CFO- Nils Chrestin, it was mentioned that the funding will allow GetYourGuide to propel further when consumers are in a better position to enjoy their travel experiences again after the risks of COVID-19 pandemic subside.
Moreover, the capital can be used for normal business expenses, for investments or acquisitions, or other strategic initiatives, including the likes of investment into the firm’s in-house Originals tour operations or advanced services to book last-minute experiences.
Unlike equity funds, revolving debt facilities are flexible, non-dilutive lines of credit, where the companies can quickly draw down funds as required for the full value of the facility. Once the debt is repaid with interest, the companies can re-draw credits up to the same limit again.
Commenting on the latest funding round, Jan Kupfer, the head of corporate and investment banking, Germany, at UniCredit cited that the firm was delighted to support GetYourGuide’s aim of continuing its growth trajectory during this extraordinary and critical situation.
He added that the successful financing also represents UniCredit’s exceptional tech advisory approach, where it looks to combine its deep tech proficiency with an expansive product range of a pan-European commercial bank.
For the record, GetYourGuide has till date raised more than over USD 600 million in equity capital ever since 2009, with its Series E funding round of USD 484 million in 2019, before the pandemic hit, allowing the company to record valuation of USD 1 billion.