Visa startup Atlys in talks to raise around $40 million from SIG, MakeMyTrip amid travel boom

Atlys is finalising a new round at a time when international travel and demand for visas is soaring.

Atlys, an online portal which is backed by a16z and helps travellers secure visas, is nearing a deal to raise $35-40 million (around Rs 310 to 360 crore) in a fresh round, according to people familiar with the developments, as an increasing number of people use the platform to plan their international travels.

Susquehanna International Group (SIG), travel tech company MakeMyTrip (MMT) and Sofina, the Belgian investor, are likely to invest in the company and put in a major chunk, around $30 million or so, of the planned $35-40 million fundraise, as per sources.

Atlys’ existing investors will put in the remaining $5-10 million, these sources added. Peak XV Partners, Elevation Capital and others are some of the existing backers of Atlys.

Atlys denied these developments and said it is not raising a round. “We firmly deny the claims being made. The information being quoted is inaccurate and does not reflect the facts,” a company spokesperson told Moneycontrol.

Atlys is finalising a new round at a time when international travel and demand for visas is soaring.

From December flight bookings jumping 20-25 percent on a year-on-year (YoY) basis to average holiday durations extending, Indian travellers are gearing up for one of the strongest year-end travel seasons in recent years.

In fact, Indians spent a record $50 billion on foreign holidays in the last three years and have increased the average trip budgets by 20-30 percent during this period.

Atlys is being valued at around $200 million (around Rs 1,800 crore) during the ongoing negotiations with potential investors, sources said.

The platform, which started in the US in 2021, is looking to cut down the time spent by Indian travellers on applying and getting a visa, betting big on the growing travel market in the country. The platform claims to simplify visa applications, reducing rejection rates and cutting processing times to just 55 seconds for over 150 destinations.

The company had first raised a $5 million Seed round in 2021 from a16z and a clutch of other investors. It then raised $12 million in a round led by Peak XV Partners and Elevation Capital, Chainsmokers’ VC fund, Mantis VC, South Park Commons, Pinterest founders, among others.

Atlys then went on to raise $20 million in its Series B funding round led by existing investors: Peak XV Partners and Elevation Capital.