Google investment helps Secret Escapes secure $60 million funding round

Funding of $60 million has been secured by travel flash sale website Secret Escapes to help fuel expansion into the US and Asia.

Funding of $60 million has been secured by travel flash sale website Secret Escapes to help fuel expansion into the US and Asia.

Google Ventures, the technology giant’s seed capital arm, and Octopus Investments have provided investment into the company.

Index Ventures and Atlas Ventures, which contributed to Secret Escapes’ £8 million funding round in 2012, also participated.

Co-founder and chief executive Alex Saint said: “The cash injection of $60 million will enable Secret Escapes to continue making great strides to replicate the success of our UK business, ultimately helping to bring us closer to our ambition of becoming the number one destination for consumers looking to book their holidays.

“We forecast to be a global multi-billion turnover business by the end of the decade.”

Secret Escapes’ revenues grew at an average annual rate of 260% between 2011 and 2014, and the company has seen its membership increase from four million at the start of last year to 19 million.

Membership is free and requires the user to sign up online using their email address in order to access discounts of up to 70% on unsold hotel rooms.

The brand, which was founded in the UK in 2010, now operates in 13 countries following its expansion into Holland, Italy, Belgium and Spain in the first half of this year.

Alliott Cole, of Octopus Investments, said: “It was Secret Escapes’ strong commercial opportunity, the size of the potential global market, and the strengths of the founding team which initially attracted us to support the brand during the early stages of the business’ development.”