Target Company Overview

WeRoad, an Italian scale-up specializing in adventure travel for Millennials, has successfully raised €13.5 million to fund its growth and international expansion. Despite facing two challenging years in the travel industry, WeRoad has not only managed to survive but is positioned for robust growth, expected to close 2021 with revenues exceeding pre-COVID levels. Alessandro Zanchetton, Managing Director of WeRoad, emphasized the company’s resilience and the ongoing support from its investors during these tumultuous times.

Recognized by Sifted as one of the 28 Italian startups to invest in for 2021 and selected by Tech5 of TheNextWeb as one of the top five hottest scale-ups in Italy, WeRoad has demonstrated remarkable operational management throughout the pandemic. Its strategic decisions have enabled it to harness the positive rebound effect in travel demand, suggesting a promising outlook for future growth.

Industry Overview

The travel industry in Italy has faced unprecedented challenges due to the COVID-19 pandemic, yet signs of recovery are becoming evident. According to the European Travel Commission, there has been a significant spike in travel demand over the summer period, with 54% of Europeans expressing intentions to book trips following their vaccinations. This positive trend is anticipated to continue through the last quarter of 2021 and into 2022 as consumer confidence re-emerges.

As restrictions ease, the desire for travel and personal connections is stronger than ever, with Italians and the wider European population eager to reconnect with the world. Notably, travelers are increasingly seeking unique experiences and opportunities for social interaction that adventure travel brands like WeRoad are well-positioned to offer.

The growing trend of experiential travel aligns with changing consumer preferences and an increasing willingness to invest in life-enriching experiences. The market is gradually pivoting towards direct-to-consumer travel brands that emphasize personalization and community-driven travel, making WeRoad's business model particularly relevant.

Rationale for the Deal

This funding round comes at a critical time when WeRoad is looking to capitalize on the pent-up demand for travel. With a mix of equity, debt, and convertible instruments, the financing not only supports the company’s operational needs but also strengthens its position by attracting additional private investments through a club deal facilitated by BacktoWork in collaboration with Intesa Sanpaolo Private Banking. This dual approach has solidified investor confidence and support during a challenging market period.

WeRoad aims to enhance its leadership in the Italian market while accelerating growth in Spain and targeting expansion into the UK. By leveraging its unique combination of being a tour operator, community enterprise, and travel tech company, WeRoad seeks to establish itself as a pan-European leader by 2025.

Investor Information

The investor group includes both long-standing backers and new private equity participants attracted to WeRoad's potential. The funding has surpassed €4 million, marking it as the largest fundraising initiative in Italy for 2021. Over 100 clients from Intesa Sanpaolo Private Banking participated in this endeavor, illustrating the growing interest among high-net-worth individuals (HNWI) in crowdinvesting opportunities.

Alberto Bassi, CEO of BacktoWork, remarked on the campaign's success, highlighting the potential of crowdinvesting as an alternative investment tool that can significantly influence innovative business growth and contribute to the recovery of the Italian economy.

View of Dealert

The investment in WeRoad appears to be a strategically sound decision, considering the company’s strong recovery trajectory and alignment with current travel trends. As travel demand rebounds, WeRoad’s focus on adventure travel positions it favorably in a niche market that is increasingly favorable for experiential travelers seeking meaningful connections.

Moreover, WeRoad's unique business model that integrates community elements and technology sets it apart from traditional players in the travel sector, suggesting a strong potential for scalability across European markets. The management's proactive approach to fostering investor relationships and maintaining operational resilience during the pandemic further enhances confidence in their growth prospects.

In conclusion, the extensive funding raised indicates a robust belief in WeRoad's future by both existing and new investors, which is promising for the company’s ambitious expansion plan and ability to adapt to a changing landscape in the travel industry.

View Original Article