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Plusgrade Nets $150 Million Investment for Auctioning Travel Products

Sean O'Neill photo
Sean O'Neill
hawaiian airlines business class plusgrade

Photo Credit: Hawaiian Airline's business class product is sometimes available for bidding via auctions powered by Plusgrade, a Canadian company that helps airlines, cruise lines, and other businesses with upselling. Plusgrade has raised $150 million from CPDQ to expand its services. Hawaiian Airlines

Skift Take

A $150 million investment in Plusgrade may seem like a lot, given the scope of the market for the company's services. But we're not surprised that a business that specializes in drawing out the highest price from bidders in consumer markets would attract this level of funding.

Plusgrade, a company that helps airlines, cruise lines, and other businesses persuade travelers to spend more, is attracting new investor interest. On Wednesday, Plusgrade said that Canadian pension fund manager Caisse de Dépôt et Placement du Québec (CPDQ) had taken an equity interest totaling $150 million (CAN$200 million) in Plusgrade. The deal placed a value on the Montréal-based tech company at more than $450 million (CAN$600 million). Some of the funding is merely switching hands. TA Associates, a private equity firm, sold some of its shares to CPDQ, though it will continue to be a major shareholder along with other investors. As Skift has noted, more than 70 airlines, such as Air Canada, Air China, Cathay, Etihad, Lufthansa Group, and Singapore Airlines, use its services. That's double the number it served three years

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