Airalo’s eSIM lets users switch mobile data providers around the world without the need for physical … More
Singapore-based Airalo, a provider of embedded SIM cards known as eSIMs to travellers, has become a unicorn after raising $220 million in a funding round led by Luxembourg-based private equity firm CVC.
The startup is now valued at over $1 billion after the funding round, in which CVC invested $185 million, CVC said in a statement on Thursday. Existing investors including Peak XV and Antler Elevate also participated in the funding round.
Airalo’s funding round comes as capital raising in Southeast Asia remains weak. The region’s startup raising $2 billion in the first half of this year, down 24% from the previous year, data from research firm Tracxn show.
“This funding is a major milestone, not just for Airalo, but for the future of global connectivity,” Ahmet Bahadir Ozdemir, CEO and cofounder of Airalo said in the statement. “This allows us to drive innovation across every part of the user journey.”
Cofounded in 2019 by Ozdemir and Abraham Burak, Airalo now serves over 20 million travelers in more than 200 countries. Its eSIM lets users switch mobile data providers around the world without the need for physical SIM cards. Boosted by booming demand from travellers, Airalo’s revenue more than tripled to $150 million in 2023, according to data from research firm Alternative PE.
“The digital travel eSIM market, whilst already worth $1 billion, is at the very early stages of becoming the main method by which consumers can receive the highest quality experience abroad, at a much lower price than they pay for roaming today,” Siddharth Patel, managing partner at CVC said.