By Doyinsola Oladipo
NEW YORK (Reuters) - Hopper, a travel booking app, said on Monday it received a $96 million follow-on investment from Capital One Financial Corp (NYSE:COF), funds it will use in part to build its social commerce business aimed at younger travelers.
Hopper said the investment will also be used to grow its business-to-business unit including building fintech products and travel portals for partners like Capital One. Its social commerce business includes games and referral programs to earn travel credit, according to the President of Hopper, Dakota Smith.
The company said its fintech offerings, such as Price Freeze and Flight Disruption Guarantee, represent about 40% of total app revenue and 70% of air booking revenue.
Capital One and Hopper launched Capital One Travel in 2021, which offers Capital One card holders products like price drop protection as well as travel rewards. The latest round of funding will extend the partnership, Smith added.
Capital One has previously told investors it is investing in its franchises including its travel portal and airport lounges in a bid to market to heavy spenders.
“Through this strategic partnership, we’re well-positioned to adapt to a rapidly changing travel environment and create industry-leading solutions for our customers,” the bank said.
Capital One invested $100 million in Hopper last year.