Artificial intelligence company acquires traditional Hong Kong travel agency, bringing more vitality to Chinese tourism
Abel Zhao, co-founder and CEO of FreeD Group, a technology innovator specializing in proprietary enterprise application solutions, has acquired 75-year-old Connexus Travel from Cathay Pacific parent company Swire Group. Financial details of the acquisition were not disclosed.
Founded in 2015, FreeD Group is a travel technology startup offering proprietary SaaS solutions for sales and marketing. The company uses AI (artificial intelligence), big data and machine learning technologies to provide end-to-end digital solutions connecting platforms, brands and service providers.
“We see great growth potential in Connexus due to its long history of premium services and the synergy that will be created between Connexus and FreedD,” Zhao said in the release. “The positive outcomes we envision include business opportunities across travel services, e-commerce, marketing services and brand loyalty programmes, all supported by comprehensive digital services and solutions. Ultimately, we expect Connexus Travel to follow FreeD Group’s Steps to transform into a global brand.”
Headquartered in Hong Kong, FreeD has more than 250 professionals from 22 different regions around the world, and operates in more than 10 markets around the world. FreeD’s customers and partners include well-known companies such as Google, BMW, FIFA World Cup, Samsung, China Mobile and LG.
The startup raised a $15 million Series B round in June 2022, led by Daiwa ACA APAC Growth Fund and ACA Partners Pte. Ltd. Investors also include Hong Kong real estate developer Chinachem Group, Hong Kong Science Park’s corporate venture capital fund, Radiant Tech Ventures and startup accelerator SOSV’s Select Fund.
The acquisition of Connexus Travel follows the startup’s strategy of expanding in Seoul and Shanghai. Established in 1948, Connexus Travel was the first Travel Management Company (TMC) registered in Hong Kong, providing domestic and foreign tourists with services ranging from hotels and tour packages to air ticket bookings and visa applications. The company has offices in Beijing and Shanghai, and obtained a local license in Beijing in 2009. With 70 years in operation, Connexus Travel has become a trusted name in corporate, leisure and MICE travel.
“We will leverage our position as the market leader and our growth plans with FreeD to expand our services into Hong Kong and China, the markets where FreeD currently operates,” said Eric Lau, general manager of Connexus Travel.
The startup also plans to expand its digital solutions to the Americas, Europe and the Middle East.
