Despegar Files for $100 Million IPO and Expedia Could Benefit From Its Growth
Photo Credit: Damián Scokin, an executive who worked for 11 years at the consulting firm McKinsey, became the new CEO of Despegar in February. He replaces the founding leader of the company, Roberto Souviron, who left the CEO role as the company prepares for an IPO. Despegar
Skift Take
Despegar is on track to attract a $1 billion valuation. That's impressive. But its newish CEO needs to pivot the business away from a reliance on selling airline tickets, which are becoming less profitable for his firm by the day.
Online travel agency Despegar — whose name comes from the Spanish verb that means "to take off" — has filed for an initial public offering on the New York Stock Exchange.
Despegar said it hopes to raise $100 million. But Renaissance Capital, an IPO research firm, estimates the company will raise $300 million. This range of estimates suggests that the market will place a $1 billion or greater valuation on Despegar, making it Latin America's first online travel unicorn.
The company, which claims to be the largest homegrown online travel agency in Latin America, has not set an initial share price or a date for the IPO.
Hedge fund Tiger Global owns 57.3 percent of the company as of Thursday, before the offering. General Atlantic Partners owns 5.4 percent. Expedia is another key holder of equity. The company's five founders and a few other investors also own shares.
In February Roberto Souviron left his 18-year job as the top boss. He is no longer on the board of directors,
