HipWay secures $2.75 million in angel funding

Russian online travel company HipWay has announced the completion of its Angel Round -- adding an additional $2 million to the company’s previous $750k financial backing and bringing its projected revenues for 2012 into the $30-$35 million range.

HipWay says it has garnered financial support from significant U.S. influencers like Chamath Palihapitiya formerly of Facebook, Michael van Swaaij formerly of Skype, Fabrice Grinda co-founder of Zingy and Mark Gerson of the Gerson Lehrman Group.

Opportunity

“While many start ups in Russia target hotel booking, HipWay is the first venture which is aiming at a much bigger, and more forward-thinking market -- organised outbound travel,” stated the company. It highlighted that the $10 billion dollar outbound travel market is currently served by thousands of small agencies known for having a poor online presence and bad overall service.

HipWay was the first on the market to offer credit card payments for packaged tours.

Also, by creating a spin-off website available by invitation only (hipclub.ru) the company provides exclusive travel opportunities and deals to its members.

“The merge of U.S. and European business standards incorporated into our Russian business practices, has allowed us to quickly increase and show great returns and potential within the market,” said Mikhail Reider, CEO and co-founder. “As we continue into 2012 we will grow our partnerships with international venture capitalists and have planned an additional funding round with a goal of receiving $10 million in funds.”

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