Online private jet aggregator PrivateFly.com has raised £2 million for expansion from eight private investors.
The funds will be used to expand into new international markets, functionality upgrades across all its platforms – including those for mobile apps – and enhanced real-time integration of pricing and availability with aircraft companies.
CEO and co-founder Adam Twidell said: “The money raised will be used to invest in innovative technology which will bring considerable efficiency benefits to customers and registered aircraft operators. It will also allow us to open up our distribution through investment in marketing, including to new territories.
“The race is now on, with other players testing different disruptive technologies to turn this traditional market on his head. The traditional broker with legacy business practices is being threatened by new business models, just as online travel aggregators challenged high street agents several years ago.”
Chairman Richard Carrick added: “The recession has been a catalyst for change in the private aviation industry, with increased cost-consciousness creating a clear demand for more price transparency and immediacy.
“PrivateFly.com has used this to its advantage, delivering significant enhancements in response speed, price and ease of use within the charter segment.
“The successful fundraising demonstrates investor confidence in the industry, particularly the ad-hoc charter market. Other private aviation segments, such as fractional ownership, have struggled post-recession due to the customer requirement of upfront cash commitment.
“Challenging market conditions give greater opportunity for profit and PrivateFly.com is a highly-scalable, low-risk, low-cost investment opportunity with a lean, online business model and aggressive pricing strategy. It ticked all the investor boxes.”