CAIRO: The rapid growth of Saudi Arabia's expatriate community and wave of digitalization is prompting UAE-based travel technology startup Tumodo to expand its horizons.
In an interview with Arab News, the company's co-founder Vladimir Kokorin said that the company's ambition to expand into the Saudi market is driven by the successful raising of $35 million in its latest funding round. Revealed the strategy.
“2024 will be the year that lays the foundation for accelerated growth in the coming years. Our goal is to reach $100 million in sales by early 2026. By the end of 2025,” he said. We are aiming for annual sales of $123 million.”
Kokorin added: “By the end of 2025, we will have a strong presence in five major cities, including Jeddah, Riyadh, Dammam, Mecca and Medina, and approximately 800 customers across the country.” added.
Tumodo aims to be fully operational in Saudi Arabia by the end of April, marking an important milestone on its expansion journey.
In its $35 million pre-seed round, Tumodo expects to capitalize on existing markets, launch new markets including India and Germany, and reach its target number of deals.
“Tumodo aims to achieve profitability in its current markets, such as Saudi Arabia, by efficiently managing its operations and increasing its revenue streams. It shows an ability to generate flow and financial stability,” Kokorin said.
Kokorin also explained that Tumodo is preparing to navigate Saudi Arabia's regulatory environment with a proactive compliance approach, ensuring compliance with local regulations through thorough investigations and collaboration with local advisors. .
He emphasized that the rapid growth of Saudi Arabia's travel market, increasing technology investments, increasing number of registered companies and expanding expatriate population emphasize the importance of expanding into the Kingdom.
Tumodo's expansion is consistent with these dynamics, and the company is positioned to capitalize on the growing demand for innovative travel management solutions in the Kingdom, supporting its vision for long-term growth and success in the region. I am.
landing in saudi arabia
Mr. Kokorin outlined ambitious short-term goals for the company's expansion into the Saudi market, highlighting its strategic focus to become the leading online travel management platform within three years.
Tumodo aims to be synonymous with value and efficiency and aims to dominate the market by demonstrating superior technology and service delivery.
In the long term, the company plans to revolutionize Saudi Arabia's travel services sector by modernizing traditional processes and improving operational efficiency.
“We are aware of the growing trend of multinational companies establishing global and regional headquarters in Saudi Arabia, which is expected to increase demand for business travel,” Kokorin said.
Tumodo aims to achieve profitability in current markets such as Saudi Arabia by efficiently managing operations and increasing revenue streams.
Vladimir Kokorin, Tumodo Co-Founder
“We plan to develop customized solutions and services specifically designed to meet the unique needs and preferences of multinational companies operating in Saudi Arabia. Multinational companies, economic organizations “By forging strategic partnerships and alliances with industry bodies, Tumodo aims to become their preferred travel management partner,” he added.
“We also plan to expand our network and presence in major business hubs and economic centers with a high concentration of multinational companies, such as Riyadh, Jeddah and Dammam, to better meet the growing demand for corporate travel services.” he said.
Speaking about broader ambitions, Kokorin revealed Tumodo's global expansion plans in 2024, targeting key markets in Europe, the Americas, India and the UK.
This global activity is consistent with Tumodo's vision to become a frontrunner in the international travel management industry, serving diverse markets and capitalizing on growth opportunities in emerging economies.
Additionally, Tumodo is keen to forge partnerships with Saudi government agencies and contribute to advancements in this field, with a particular focus on automation, analytics and green initiatives.
business basics
Kokorin revealed the company's mission to revolutionize Saudi Arabia's travel tech sector through innovative automation.
Tumodo focuses on simplifying the complexity of travel management, which includes a wide range of tasks, from booking flights and accommodations to managing itineraries and processing refunds.
By leveraging technology, Tumodo aims to streamline these processes and significantly reduce manual effort, time, and potential for error.
The company's solutions are designed to enhance visibility and control of corporate travel spend, ensure transparency and accountability in managing travel-related costs, and thereby help optimize travel spend and improve financial management practices. It has been.
Discussing Tumodo's business model, Kokorin said that the company's revenue streams include booking fees and processing fees.
These are earned when customers book various travel services through Tumodo's platform, with processing fees covering transaction facilitation costs and system maintenance.
Kokorin emphasized Tumodo's commitment to transparency, ensuring that users do not incur hidden fees and maintaining transparent operations.
On the topic of profitability, Kokorin acknowledges that Tumodo is currently in an investment phase focused on development, marketing and talent acquisition.
“Our MENA revenue streams have been consistently growing in line with our forecasts and have been able to cover all of our core costs. We expect to start recouping our investment within the year,” Kokorin said.
As Kokorin reveals, the inspiration behind Tumodo comes from the global trend towards digitization, which also encompasses traditionally offline sectors.
“From media to cars, people need speed, connectivity and ergonomics. Business travel is no exception. The idea is to use computer technology to make business travel convenient and convenient for everyone. We wanted to make it quick and easy. There's no need to spend hours or days booking and managing travel over the phone or at an agent's office when you can do it all from your mobile device with just a few clicks,” he said. Said.
Kokorin says market penetration and customer satisfaction are key metrics for Tumodo when it comes to measuring success.
The company takes pride in retaining its customers over the long term and views its growing customer base as proof that its mission has been accomplished. Kokorin also emphasizes the importance of developing local indicators specific to the Saudi market, although this is still under consideration.
I'm looking forward to
Kokorin expresses optimism about the Saudi travel tech market, highlighting its potential for growth and technological advancement.
As Vision 2030 drives Saudi development initiatives, there is a growing trend among Saudi businesses to adopt digital solutions for travel management.
This evolution is expected to drive demand for platforms like Tumodo that streamline and automate the travel process.
“Given these market trends, Tumodo aims to establish itself as the leading online travel management company in Saudi Arabia. Through its user-friendly interface, robust functionality, and dedication to customer satisfaction, Tumodo We aim to establish ourselves as the preferred option for Saudi businesses,” Kokorin explained.