Travel technology consortium Mondee has attracted an additional $ 20 million in investment to be listed through a merger with acquisition company Ithax Acquisition Corp.
The additional investment, on top of the $ 50 million announced earlier this year, brings the total private investment in public equity for the merger to $ 70 million. While Ithax and Mondee, whose portfolio consists of both leisure and business-focused brands including Rocketrip, did not identify investors in the press release on the investment, the Financial Times reported Sunday that investors were hedge fund Elliott Management and Siris Capital, also the owners of Travelport.
While the number of SPAC transactions has risen sharply in recent years – including several in the travel industry, such as American Express Global Business Travel, Cvent and Wheels Up – the Financial Times noted that the market for them has slowed due to poor results for some of the agreements and increased regulatory pressure, making it more difficult to obtain financing for the agreements. To date this year, 21 SPAC merger agreements have been dropped, compared to just three in the same period in 2021, according to the Financial Times.
“Generating a significant additional investment in our PIPE all-share transaction for $ 10 in such a challenging environment for SPAC and PIPE transactions underscores the strength of Mondee as a compelling travel technology investment,” said Ithax CEO Orestes Fintiklis in a declaration. “Mondee is a proven performer in the field of travel technology, with, we believe, a great path to grow both organically and through mergers and acquisitions to further take market share.”