Travel Platform Mondee May Go Public in $1B SPAC Merger

Mondee, which works on connecting travel agents with airlines, is on track to close a deal with a SPAC to go public at a value of around $1 billion, The Wall Street Journal writes.

Mondee could potentially merge with ITHAX Acquisition Group, the report says, and the deal might be announced by Monday (Dec. 20).

Founded in 2011, Mondee’s activity as of late has focused on expanding its portfolio, adding new areas like hotels, cars and cruises, along with a subscription-based direct-to-consumer segment.

Mondee’s current flight deals are usually sold by travel agents and other companies to help completely fill planes.

Ultimately the company wants to position itself as a travel marketplace for customers looking for customized experiences through third parties, with some of its services also working with “gig travel agents,” or independent workers helping users to book travel.

Mondee’s trajectory here is comparable to others in the travel industry, pursuing SPAC deals in the pandemic environment where investors are looking toward greater demand and shifting travel behavior in the coming years.

According to Mondee, this year’s sales might still be below pre-pandemic levels from 2019 – but there could be widespread growth in the coming years.

Part of the deal would make it so Mondee would have to raise a $50 million private investment in public equity. The funds will include some affiliated with Morgan Stanley Investment Management, among others.

In 2020, Mondee bought Rocketrip, the New York City startup, to boost travel spending incentives. PYMNTS writes that the deal was meant to help alleviate stresses from the way employees spend too much on company cards.

See also: Mondee Acquires Rocketrip To Expand Travel Spending Incentives

The idea behind Rocketrip is to offer benefits to those employees who don’t spend too much.

One of Mondee’s platforms includes TripPro, which companies make use of for various operations, and the company owns TripPlanet, too, helping out smaller businesses with travel bookings.