The Queensland Investment Corporation led the funding round into Travello, with further investment coming from Paspalis Innovation Investment Fund.
Travello functions as a combination youth social network and travel agency, letting travellers book experiences and tours.
The company says the funds will position it to capture pent-up demand as the world emerges from the pandemic.
"The 'travel experiencers' vertical is the biggest opportunity in travel and will see significant growth in both the near and long term," said co-founder Ryan Hanly, co-founder and CEO.
"The sector is still very young, conservatively 10-15 years behind flights and accommodation in every aspect.
"It's a really immature market and that's what presents such a great opportunity."
Around three-quarters of flights and accommodation is booked online, but just one-quarter of tours and activities are, Mr Hanly said.
"That's a very exciting growth opportunity."
Travello sees its biggest competitors as the pamphlet wall in a lobby or hotel, he added.
Other youth travel brands including the "iconic" STA Travel and Student Flights didn't survive the pandemic, he noted, "so the lack of competitors presents a unique opportunity for Travello to capture market share".
Mr Hanly said that Travello was seeing 25 per cent monthly growth.
6°C