South African web-based travel startup FOMO Travel has raised funding from the Singer Group, which will provide the company with the infrastructure to help it develop.
Launched in November of last year, FOMO Travel allows users to break down the total cost of a travel experience, paying via smaller installments over a predetermined period of time prior to departure. It currently has 7,000 active users.
Singer Group, via its group company Amazing Holidays, has acquired a minority interest in the startup and will also provide it with the infrastructure to develop. This infrastructure includes office premises, use of travel consultants, IT systems, access to existing commercial deals, internal marketing resources, and bookkeeping services.
Brian Singer, chief executive officer (CEO) of the Singer Group, will also become personally involved with planning the overall direction FOMO Travel will take in the future.
“As we achieve critical mass in the coming months, FOMO Travel will establish its own infrastructure,” Singer said.
“This is a very exciting era for both Amazing Holidays and FOMO Travel. The Singer Group has been on a growth trajectory for over 20 years now, and this will be our first foray into the fintech space. With FOMO Travel’s technology and the Singer Group’s decades of travel experience, it is a perfect partnership to ensure the success of this new venture.”
FOMO Travel founder and CEO Andrew Katzwinkel said his startup had developed a unique algorithm that underpins the digital lay-buy payment solution, allowing keen travellers to seamlessly book online using a unique payment mechanism.
“FOMO Travel is geared towards millennials, who may be prohibited from buying travel predominantly because they don’t have a credit rating. This alternative payment method is well suited to that market,” he said.
“We’re also targeting middle class working individuals who may have an inability to manage cash flow. It’s also aimed at people who want to travel, but don’t have the full cash upfront and don’t want to travel via credit.”