Online business travel management solutions provider KDS has attracted US$13 million in venture financing from Accel Partners and Atlas Venture.

Published: 11 Oct 2005

Online business travel management solutions provider KDS has attracted US$13 million in venture financing from Accel Partners and Atlas Venture.

KDS said that the funds will be used to accelerate the company's international expansion and to cement further its position as the provider of choice in corporate travel.

"Both the substantial value of this round of financing and the quality of the investors represent a source of immense satisfaction for KDS," said Yves Weisselberger, chief executive officer, KDS.

Weisselberger said that this financing comes at a time when the corporate travel self-booking market is booming. "It will allow KDS to further leverage its technological and market leadership by growing its presence in all major countries," said Weisselberger.

"The travel market is undergoing significant business and technological change. With the European online travel solutions market expected to increase 6-fold in the next three years, there is a clear opportunity for KDS to secure a pre-eminent position as the trusted provider of solutions to its customers and partners," said Harry Nelis from Accel Partners.

According to KDS, more than 4000 companies use KDS's software solutions, including Shell, British Petroleum, Henkel, Alcatel, Accenture, Cap Gemini, Yahoo! and many others. The company says it has helped many global companies cut their travel budget by 10 to 20 per cent, resulting in up to 0.5% improvement to the bottom line. To serve these global customers, KDS has partnered with leading travel companies, such as Carlson Wagonlit Travel, American Express and the Cendant Group.

"Some large corporations use KDS services to book more than 90% of their trips online. By doing so, they make sure they get the best fares available and benefit from the reduced online transaction prices now offered by most Travel Management Companies. In 2005, business has been extremely brisk for KDS. The rate of travel bookings made via KDS, during the first months of the year, has tripled versus the same period in 2004. The company is also signing twice as many contracts as last year. With a high proportion of recurring revenues, this provides KDS with a stable base for growth," says the company.

SAGAX (Greenwich, Connecticut), an investment company and financial adviser to KDS, also participated in the round. As a result of the transaction, Harry Nelis of Accel and Fred Destin of Atlas Venture will be joining the Board of KDS.