The burgeoning expatriate community and digital surge in Saudi Arabia have beckoned UAE-based travel tech startup Tumodo to expand its horizons.

In an interview with Arab News, Vladimir Kokorin, co-founder of the firm, unveiled the company’s ambitious strategy to venture into the Saudi market, buoyed by a successful $35 million raised in its latest funding round.

He said: “2024 will be the year to set up the foundation for accelerated growth in the upcoming years. Our target is to reach $100 million in sales by early 2026. By the end of 2025, we aim to have an annualized turnover of $123 million.”

Kokorin added: “We also plan to have a strong presence in five major cities including Jeddah, Riyadh, Dammam, Makkah, and Medina with about 800 clients nationwide by the end of 2025.”  By the end of April, Tumodo aims to be fully operational in Saudi Arabia, marking a significant milestone in its expansion journey.

Amid its $35 million pre-seed round, Tumodo anticipates becoming profitable in existing markets, launching new markets —including India and Germany, and reaching targeted transaction counts.  “Tumodo aims to achieve profitability in its current markets, such as Saudi Arabia, by efficiently managing its operations and increasing revenue streams. This milestone signifies the company’s ability to sustainably generate positive cash flow and financial stability,” Kokorin stated.

Tumodo is also preparing to navigate Saudi Arabia’s regulatory environment with a proactive compliance approach, ensuring adherence to local regulations through thorough research and engagement with local advisors, Kokorin explained.

He emphasized the importance of expanding into the Kingdom is underscored by Saudi Arabia’s rapid travel market growth, increased tech investment, rising number of registered companies, and expanding expat population.  

Tumodo’s expansion aligns with these dynamics, positioning the company to capitalize on the growing demand for innovative travel management solutions in the Kingdom, supporting its vision for long-term growth and success in the region.

A Saudi landing

Kokorin outlined ambitious short-term objectives for the company’s expansion into the Saudi Arabian market, emphasizing a strategic focus on becoming the leading online travel management platform within three years.  

Tumodo aims to be synonymous with value and efficiency, aspiring to dominate the market by demonstrating their superior technology and service offerings.  In the long term, the firm plans to revolutionize Saudi Arabia’s travel services sector by modernizing traditional processes and enhancing operational efficiency.  

“We recognize the growing trend of multinational corporations establishing global and regional headquarters in Saudi Arabia, which is expected to drive an increase in business travel demand,” Kokorin said. “We plan to develop tailored solutions and services specifically designed to meet the unique needs and preferences of multinational companies operating in Saudi Arabia. By forging strategic partnerships and alliances with multinational corporations, business associations, and industry organizations, Tumodo aims to become their preferred travel management partner,” he added.