Mobile Startup Airalo Raises $60 Million to Expand its Business
Travel is back on the agenda after a COVID-19 hiatus, and today a mobile startup is announcing a healthy round of funding to capitalize on that.
Airalo, an eSIM connectivity provider, has raised $60 million in a Series B round to expand its business.
The Funding Round
The all-equity round values Airalo at $280 million post-money and includes financial and strategic backers such as e& Capital, Antler Elevate, Liberty Global, Rakuten Capital, Singtel Innov8, Surge, Orange, T Capital, KPN Ventures, Telefónica Ventures, I2BF Global Ventures, GO Ventures, and LG Technology Ventures.
Growth and Potential
Despite just closing its funding round, Airalo has shown strong growth with a 20% increase in revenue month-on-month. The company has nearly 1 million monthly downloads for the past three months, leading to discussions with potential investors about a higher valuation between $800 million and $1 billion.
eSIM Revolution
Airalo, launched in 2019, benefits from the growing popularity of eSIM technology promoted by companies like Apple. With eSIM, users can switch mobile carriers without physically changing SIM cards.
The flexibility and cost-effectiveness of eSIM offerings have been attracting consumers, forcing mobile operators to be more competitive. Airalo has capitalized on this trend by offering granular, affordable eSIM data packages.
Airalo’s Marketplace Model
Currently, Airalo serves 5.1 million customers through its marketplace of eSIM plans. The company builds these options by brokering carrier agreements across the globe, providing a wide range of choices to consumers.
Working with Carriers
Airalo secures carrier partnerships despite potentially competing directly against them. This enables carriers to capture business from customers who are already seeking alternative mobile roaming plans.
Expanding Beyond Connectivity
Airalo plans to introduce “Airalo Partners,” an innovative connectivity solution tailored to global businesses and organizations, using the funding it raised.
Investment Confidence
e& Capital, which led the Series B financing round, expressed confidence in Airalo’s potential to become a travel essential and support their journey towards becoming the definitive gateway to instant connectivity worldwide.