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Travel Startup Funding Declines in 2025: How Global Uncertainty and AI Innovation Shape Investment Opportunities in Travel Tech

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Home » Travel News Pick » Travel Startup Funding Declines in 2025: How Global Uncertainty and AI Innovation Shape Investment Opportunities in Travel Tech

Sunday, August 3, 2025

The global context seems to have an impact on the travel industry’s slowing down of the travel industry’s funding, especially during the start of 2025. In the travel tech segment, the dip in funding of $1 billion to travel tech startups in the first quarter of 2025, along with the $800 million in investment noted in the second quarter, appears to be indicative of a period of volatility. During the preceding year, a range of global conflicts, as well as concerns with regard to tariffs and political situations, have caused the tech travel sector to be treated with far more caution.

The travel industry pandemic rebound period seems to booster the industry’s funding in the lead up to 2025 with a projection of receiving $16 billion in 2021. In stark contrast to the $5.5 million noted in 2024, the expectation of $4 billion investment during 2025 serves to indicate that the funding available to industry startups is on the decline. Through 2025 the other expectation is framed on these values, the continuing dip on travel tech funding caters to fears surrounding economic instability, attitudes toward risk, the pace of tech synthesis, and funding available.

The Effects of Global Uncertainty on Funding for Travel Startups

The Global Economic Uncertainty report on Travel Startups Funding states that emerging technologies, especially artificial intelligence, have a considerable impact on funding Artificial Travel Startups. Coupled with the rising tariffs, political unrest, and fluctuating currencies, travel startups AI technologies, the funding for AI Travel Startups has decreased tremendously. All of the above factors have led to an investors’ selective approach when it comes to travel startups.

The travel industry, in particular, is one that has suffered a great deal of complexity in terms of financing. Travel startup businesses that used to flourish and expand at a rapid have suffered a great deal during and especially for investors back in 2025. The COVID-19 global pandemic has led to the emergence and interrelations of previously un-imagined factors of business such as systematic travel, systematic economy, irrational travel policies, and artificial investments.

Travel Technology Startups and Investment Innovation Trends

The COVID-19 pandemic has led to unforseen and un-imagined global, economic, social and business factors. Travel technology startups have managed to increase their funding and investments. The fact that they managed to secure funding during such a rough economic period, serves as a good example. Corporates such as Fora, Holodi, Canary and Ramp have dramatically shifted the investment paradigm due to their lack of panic during financial results of investors back in 2025.

As an example, Ramp, focused on financial management for businesses with a technology platform, received $200 million in funding. Canary Technologies, for its part, raised $80 million as a provider of enterprise-grade technology solutions for hospitality. Fora, a quickly scaling travel advisory, received $60 million for further investment into their services. Still, contracting investor confidence has caused most other startups to receive funding under $10 million, a trend that captures a wider scope of diminished investor trust.

Onfly, a travel tech startup that was featured in PhocusWire’s Hot 25 Startup list for 2022, did manage to receive $40 million, which is a notable exception. This is, in fact, a good sign for startups that are innovative and manage to distinguish themselves in a competitive space.

The Difficulty in Receiving Funding for Early-Stage Startups

In comparison, early stage startups have had a more difficult time securing funding, as large rounds of funding continue to be obtained. Pre-seed and seed rounds have dramatically declined, with only a very small number of firms able to secure funding. In the last few months, Juno, Travaras, and Airial Travel, raised a modest but still notable $1.4 million to $3 million each.

The AI-powered environment poses additional challenges due to a lack of funding. The potential of AI is not lost on travel startups, but most investors are wary due to the overselling of AI technologies. The ability to make use of AI in the appropriate manner is viewed as a key determinant of a startup’s attractiveness to investors. However, given the travel industry’s uncertain landscape, investors are unwilling to pour substantial money into early-stage ventures that lack a track record.

Travel Tech Investment Outlook

Despite these hurdles, a number of leading travel tech investors have expressed optimism, particularly with respect to funding in the growth and later stages, which suggests that early-stage funding is more challenging to secure. These investors are optimistic about the funding climate toward established travel tech firms that have proven their business model and success.

According to some specialists, the travel technology industry has transitioned from a mere subsection to a fully-fledged vertical, complete with defined routes from conception to IPO. Investors now understand the industry thoroughly. This particular aspect of market maturity may contribute to the increased optimism regarding growth-stage companies tailored for investment.

The funding optimism for companies initiating later-stage funding aligns with broader investment industry trends. The ongoing refinement of travel technology companies and the meticulous scaling of their operations has rendered the preceding journey to a lucrative exit—either via IPOs or mergers and acquisitions (M&A)—more streamlined, thus increasing their appeal to strategic investors.

M&A Activity and the Quest for Exits

As funding becomes more challenging to secure, some startups are now seeking out mergers and acquisitions (M&A) activity as a strategy to gain an exit. While the year-over-year M&A activity for the second quarter of 2025 was rather tame, there were a couple of significant deals. For instance, Marriott continues to pursue companies that help enhance their lines of business by purchasing CitizenM for $355 million. Likewise, some major players in the travel sector are seeking to divest non-core assets, as exemplified by the $1.1 billion acquisition of Sabre’s hospitality business by TPG, thus creating opportunities for startups to be absorbed.

Consolidation becomes the order of the day in travel tech, and these deals showcase this trend. The once attainable funding for independent startups is now turning out to be more of a challenge, thus enabling organic growth via acquisitions is a more plausible strategy for many.

Both the lack of funding and the hurdles that startups need to overcome brings forth an interesting hypothesis that, for many companies, M&A activity will become a more commonplace strategy to pursue in the upcoming months. This trend, primarily driven by the desire to exploit new technologies that can be assimilated into their business operations, can be observed for some time.

The Importance of IPOs Within the Travel Tech Sector

Concerning the travel sector, IPOs have recently shown some hopeful signs, even if funding and acquisitions remain sluggish. Companies such as Navan Travel are openly announcing their plans to IPO, which signals confidence in the market’s potential over the long run. These IPOs offer the possibility of fulfilling the liquidity needs of travel startups and could serve as an indicator for others who are contemplating going public in the future.

The combination of the prevailing global economic uncertainties makes the route to IPO even more difficult. As the travel sector works through the various challenges, companies will have to demonstrate some value in their resilience and adaptability prior to being exposed to the IPO public offering scrutiny.

Final Thoughts: Where to Travel Tech Startups Look for Investment in the Future?

As noted, the forecast decline in startup investment in travel tech for 2025 is consistent with prevailing global economic trends. These include some degree of global conflict, rising tensions between major global players, and political ‘vagueness’ all resulting in an investment ‘wait and see’ approach. While some investors are still able to fund travel tech companies, investment in early-stage companies is more difficult than ever.

Notwithstanding these challenges, the outlook for travel startups remains optimistic. There will invariably be investment in the market’s maturation’s later stages. In addition, continued efforts by travel tech companies to optimize their business models and enter new markets will drive further consolidation and innovation by enhancing the potential for mergers and acquisitions and IPOs.

Startups willing to adapt to current conditions in the travel sector must be agile and forward-looking. In the context of sustainability, artificial intelligence, new business models, and a looming global unpredictability, the next phase will likely be dominated by companies that endure the test of innovation against resilience.



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CP AXTRA Unveils Digital Transformation Vision and Partners with Tencent Cloud to Power AI-Driven Retail Tech

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September 1, 2025

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BANGKOK, Sept. 1, 2025 /PRNewswire/ — CP AXTRA, the operator of Asia’s leading wholesale and retail businesses — Makro and Lotus’s — based in Thailand, is accelerating its digital transformation journey as part of its commitment to shaping the future of smart retail. At the core of this vision is a commitment to leveraging cutting-edge artificial intelligence (AI) to significantly increase manpower efficiency, enabling team members to focus on higher-value, strategic tasks while driving online sales and aligning with the evolving needs of today’s consumers.


The delegation of CP AXTRA visiting Tencent Headquarter in Shenzhen

This transformation is supported by CP AXTRA’s strategic partnership with Tencent Cloud, the cloud business of global leading technology company Tencent. The collaboration, formalized earlier this year through a Memorandum of Understanding (MoU), combines CP AXTRA’s retail expertise with Tencent Cloud’s advanced technology solutions — setting a new benchmark for innovation in retail across Asia and beyond.

Under this partnership, CP AXTRA is deploying Tencent Cloud’s comprehensive suite of services, including Infrastructure-as-a-Service (IaaS), AI powered big data and database solutions, as well as advanced container management solutions such as Tencent Kubernetes Engine (TKE). These tools are instrumental in optimizing operations across more than 2,600 stores in Thailand, enabling scalable digital innovation and significant cost efficiencies.

A cornerstone of this transformation is Tencent Kubernetes Engine (TKE), which help CP AXTRA achieve elastic scaling, enabling IT infrastructure to adapt dynamically to fluctuating business demands. Complementing this, AI-driven innovations are revolutionizing inventory management and sales forecasting, laying the foundation for a more intelligent, responsive retail ecosystem.

As part of its digital expansion, CP AXTRA has also officially launched its Weixin/WeChat Mini Program, offering a seamless shopping experience for Chinese-speaking consumers across Asia. The Mini Program allows customers to explore and purchase a curated selection of Thai products directly from their smartphones, without needing to travel — making “Thailand to your hands” a reality. From everyday essentials to local favorites, all products are delivered with CP AXTRA’s trusted quality and service.

This initiative underscores CP AXTRA’s ambition to provide a cross-border lifestyle shopping experience that blends reliable Thai sourcing with the speed and convenience expected by modern consumers in China and across the region.

Chen Rui, Vice President of International Business and Managing Director for Southeast Asia at Tencent Cloud, said, “We are honored to partner with CP AXTRA on their transformative journey toward smart retail. By combining Tencent Cloud’s advanced AI and cloud infrastructure with CP AXTRA’s deep industry expertise, we are helping to solve complex challenges and unlock new opportunities for growth. Our solutions, such as the Tencent Kubernetes Engine, are enabling CP AXTRA to scale dynamically, optimize operations, and achieve significant cost efficiencies across thousands of stores. Together, we are setting a new standard for digital innovation in the retail sector and demonstrating the immense potential of cloud technology to drive sustainable business success.”

Tarin Thaniyavarn, Group Chief Technology & Data Officers and Group Chief E-Commerce Officer, CP AXTRA Public Company Limited, added, “At CP AXTRA, we are committed to redefining the future of retail in Southeast Asia through bold innovation and strategic partnerships. Our digital transformation roadmap is not just about adopting new technologies—it’s about empowering our people and creating smarter, more agile operations that benefit both our customers and our teams. By harnessing the power of artificial intelligence and working closely with Tencent Cloud, we are reducing repetitive workloads, enabling our employees to focus on higher-value tasks, and setting ambitious targets for online growth. This partnership is a testament to our dedication to sustainable, technology-driven progress and our vision to lead the region into a new era of smart retail.”

This partnership is more than a technological upgrade — it represents a transformative redefinition of customer experiences and retail innovation. By addressing key challenges in scalability, AI integration, and infrastructure optimization, CP AXTRA is strengthening its position as a retail tech leader in Asia. With Tencent Cloud’s proven global footprint, serving over 10,000 clients across over 80 countries, this alliance also further cements Tencent Cloud’s position as the trusted cloud partner for enterprises driving digital innovations worldwide.

About Tencent Cloud

Tencent Cloud, one of the world’s leading cloud companies, is committed to creating innovative solutions to resolve real-world issues and enabling digital transformation for smart industries. Through our extensive global infrastructure, Tencent Cloud provides businesses across the globe with stable and secure industry-leading cloud products and services, leveraging technological advancements such as cloud computing, Big Data analytics, AI, IoT, and network security. It is our constant mission to meet the needs of industries across the board, including the fields of gaming, media and entertainment, finance, healthcare, property, retail, travel, and transportation.

About CP AXTRA

CP AXTRA Public Company Limited, is an operator of Asia’s leading wholesaler and retailer, Makro and Lotus’s. The Company is based in Thailand, with operation across 10 countries. CP AXTRA is committed to fulfilling people’s lives with good health, love, joy, and well-being, by providing solutions and meeting customers’ daily needs with technology, innovation, and operational excellence.

With over 30 years of retail experience, CP AXTRA is a trusted partner for both B2B and B2C customers, offering a comprehensive range of products and services. Today, it manages over 2,600 offline stores in Thailand and Asia, with strong online presence.



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Alibaba’s AI Cloud Surge Challenges Tech Giants’ Dominance

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September 1, 2025

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Alibaba’s China Hong Kong-listed shares surged 15% following its recent quarterly earnings report, driven largely by robust performance in its cloud computing and artificial intelligence (AI) divisions. The company’s Cloud Intelligence Group reported a 26% year-on-year increase in revenue, with AI-related product sales maintaining triple-digit growth for eight consecutive quarters [2]. This has positioned Alibaba’s cloud services as a critical pillar for monetizing AI, mirroring the strategies of global tech giants such as Microsoft and Google [2].

Alibaba’s CEO, Eddie Wu, highlighted the strong demand for AI, stating that AI-related product revenue now constitutes a significant share of external customer revenue [2]. The company has continued to expand its AI capabilities, including the development of a new AI chip to support its cloud division and reduce reliance on foreign GPU suppliers [2]. This move aims to enhance performance and reduce costs in Chinese data centers, aligning with broader efforts to control more of the AI stack domestically [1].

Despite the strong cloud performance, Alibaba’s overall financial results showed mixed outcomes. Group revenue for the quarter totaled approximately 247.7 billion yuan, a modest increase that fell slightly below some forecasts [1]. While the cloud segment contributed to improved operating profits, other divisions such as China’s e-commerce and local services were affected by rising operating costs and aggressive price competition in the food delivery market [1]. Ele.me, Alibaba’s food delivery unit, reported margin pressures due to heavy subsidies and fierce competition, a challenge shared by other players in the sector [1].

The company’s financial strategy has shifted toward prioritizing high-value AI and cloud investments while reducing spending on lower-return projects [1]. Management signaled a potential pullback from aggressive subsidy tactics in food delivery and is exploring premium services and asset sales to improve unit economics. Alibaba is also considering an initial public offering (IPO) for its cloud unit, a move that could elevate the segment’s profile and attract independent valuation for its AI assets [1].

Investor reaction has been positive, particularly regarding the cloud and AI growth trajectory, though short-term concerns remain over margin pressures in local services and instant commerce. Analysts are divided on whether the AI and cloud segments can fully offset near-term profit challenges or if continued competition will keep margins depressed for several quarters [1]. However, the share price jump suggests that the market is optimistic about Alibaba’s long-term AI monetization potential.

Alibaba’s advancements in AI and cloud computing have global implications, increasing competition with major cloud providers like Amazon and Microsoft [1]. If the company’s AI tools and in-house chips scale effectively, it could offer a compelling alternative in regions such as Asia, Africa, and the Middle East. However, geopolitical factors and trade restrictions will require Alibaba to balance global ambitions with local supply chain and regulatory constraints.

Source: [1] Alibaba AI Revenue Rises While China Food War Hits Profit (https://meyka.com/blog/alibaba-ai-revenue-rises-while-china-food-war-hits-profit/) [2] Alibaba (BABA) June quarter 2025 earnings report (https://www.cnbc.com/2025/08/29/alibaba-baba-june-quarter-2025-earnings-report.html) [3] Alibaba’s cloud-computing business is thriving, and it has a … (https://www.marketwatch.com/story/alibabas-stock-rises-as-cloud-computing-business-shines-and-with-a-new-ai-chip-in-the-works-6bb26ce5)



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Armenia readies itself as emerging global AI hub / Armenia / Areas / Homepage

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September 1, 2025

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The Nvidia’s vice president Rev Lebaridian with Nikol Pashinyan (Photo by Armenia government)


A combination of Armenia’s Soviet past, American technological innovation, and successful entrepreneurship among its diaspora offers the landlocked country a remarkable opportunity to not only become the major IT hub in the South Caucasus but also to become an emerging centre for innovation

Firebird, a San Francisco and Yerevan-based startup, and the Armenian government have announced the development of a $500 million Artificial Intelligence (AI) factory in the landlocked South Caucasus country. A next-generation data centre, purpose-built to produce AI models and solutions at scale, will be completed next year. Firebird and Team Centre, another local venture, will finance the development while U.S. global tech giant Nvidia will be the technology partner. Nvidia is best known for its Graphic Processing Units (GPUs). Initially intended for video gaming, Nvidia GPUs are now sought after for scientific and artificial intelligence purposes. The company has a market capitalisation of $4 trillion.

Nvidia plans to establish 20 other AI factories across Europe in the coming years, claiming that they would boost AI computing capacity in the European Union tenfold in the next 10 years. AI factories are considered the bedrock for its Europe’s AI future. Nvidia will first establish “factories” in Germany, Sweden, Italy, Spain, and Finland, as well as outside the economic bloc in the UK, to “fuel the next industrial transformation”.

Nvidia opened an office and research centre in Yerevan in 2022. Coincidentally, one of Nvidia’s Vice-Presidents, Rev Lebaredian, is an ethnic Armenian and was instrumental in connecting the company with Armenian Prime Minister Nikol Pashinyan after he rose to power in 2018. He is also the nephew of Gerard Libaridian, former foreign policy advisor to Armenia’s first president, Levon Ter-Petrosyan, in the 1990s.

The announcement of the AI Factory partnership came at Nvidia’s GPU Technology Conference in Paris in June this year.In this initial stage, Armenia will receive thousands of the Blackwell GPUs rather than the higher end H20.


Nvidia is the biggest name in AI industry and is the latest to show interest in Armenia. The U.S-Armenia Strategic Partnership Charter, signed at the beginning of the year with the previous Biden administration, includes cooperation on AI and semiconductors.

On 11 August, Nikol Pashinyan’s press secretary told the media that two of three memorandums of mutual cooperation signed by Armenia and the U.S. at the recent Trump-facilitated White House summit on 8 August also concerned artificial intelligence, semiconductors, and energy security. This could relate to replacing Armenia’s Soviet-era Metsamor nuclear reactor by 2036, possibly with American Small Modular Reactors (SMRs), and to power the country’s AI future.

Power consumption is a major consideration for an AI data centre or factory such as Nvidia’s that will be scalable to 100 MW and potentially expandable in the future.

Currently, the Armenian government is attempting to nationalise the electricity network while its owner, Russian-Armenian businessman Samuel Karapetyan, is in pre-trial detention on attempted coup and corruption charges. The country, anyway, had a legacy of success even in the Soviet-era when it was often referred to as the “Silicon Valley of the USSR.” Post-independence, there were attempts to resurrect and develop this technological prowess even before Pashinyan.

If in 2008 the tech sector had a turnover of $96 million, it had reached $765 million in 2017 with a number of major U.S. tech companies such as Synopsis opening up shop. Armenia has also scored success in educating a new generation to work in this area too. The Tumo Centre for Creative Technologies, a diaspora-founded educational project for youth, was established in 2011 and has already expanded globally. Lebaridian, incidentally, is also on Tumo’s Advisory Board. Though Nvidia’s AI Factory will attract foreign specialists to the country, such initiatives will also prepare the younger generation for future employment opportunities. It is one of a few examples of how diaspora assistance to Armenia has been especially successful.

The Afeyan Foundation for Armenia is a founding investor in Firebird, and American-Canadian Noubar Afeyan will act as a strategic advisor and founding partner. Afeyan is better known to many as the co-founder of Moderna, responsible for producing one of the main vaccines during the COVID-19 pandemic.

“This is about building a launchpad for innovation – from Armenia to the world,” said Egyptian-American Razmig Hovaghimian, co-founder and CEO of Firebird. “We will invest in novel models, in robotics and the sciences, in partnership with leading universities from around the world, and build the capacity to incubate the next generation of innovators in Armenia.”

For Armenia, Nvidia’s presence represents more than just foreign investment. It signals a step toward embedding itself into a global innovation network at a time when AI is reshaping entire industries worldwide. If cultivated carefully, the partnership could encourage the further arrival of other leading tech companies, further accelerating Armenia’s growth as a digital economy.

“We are excited about the potential for U.S. technology exports and AI leadership to drive more innovation in Armenia’s dynamic tech sector, benefitting the United States and Armenia,” said U.S. Ambassador to Armenia Kristina Kvien. “Companies like NVIDIA continue to offer world-leading computing and AI solutions, and we are proud that they are the partners of choice for Armenian counterparts.”





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