Friday Funding: Hopper Secures $96 Million From Capital One

Hopping Into Funding

Hopper, a travel app that’s growing in popularity, recently secured a $96 million investment from Capital One (COF). The bank previously led Hopper’s $170 million financing round in March 2021. This most recent cash infusion expands the partnership between the two companies.

The bunny-themed travel app currently claims to be North America’s third largest online travel agency, with 80 million app downloads. It offers booking services for things like flights, hotels, car rentals, and lodging.

Even though its finances are not publicly available, Forbes expects Hopper to report close to $4.5 billion in sales this year.

Bringing Fintech to Travel

One of the keys to Hopper’s popularity is its selection of fintech travel products. This includes price freezes on airline tickets, alerts when prices drop, a significant rewards program, and cancel-for-any-reason insurance.

During the constantly-changing travel rules of the pandemic, many travelers opted for Hopper over other services, due to these features.

This new funding will help Hopper expand its relationship with Capital One. In particular, it will expand Capital One Travel, a booking portal that offers Hopper’s booking benefits to Capital One cardholders. Hopper’s executives also expressed a desire to expand its social commerce initiatives.

Time to Hop On?

Despite its size, Hopper is still timid as a rabbit when it comes to releasing its financial figures. However, some estimates situate Hopper’s valuation at around $5 billion.

As of now, the travel app has no plans to go public. Instead, Hopper wants to use its fresh funding to market its app more aggressively while expanding its range of fintech products.

So, if you haven’t booked your holiday flights home yet, it might be time for you to hop on the Hopper bandwagon.

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