RedDoorz bags US$45M as its competitor OYO is fast expanding in Southeast Asia
RedDoorz, a leading hotel management and booking platforms in Southeast Asia, announced today it has bagged US$45 million in Series B round of funding, led by Chinese VC firm Qiming Venture Partners, alongside Jungle Ventures and its network of Limited Partners.
New investor Indonesia-based media company MNC Group, besides existing investors including Hendale Capital, International Finance Corporation, and Susquehanna International Group (SIG), also co-invested in the round.
Singapore-headquartered RedDoorz intends to use the new amounts to aggressively pursue growth strategies to become a prominent player in the region. The new funding will give a leeway for RedDoorz to compete with deep-pocketed OYO, which is backed by the likes of SoftBank. Headquartered in India, OYO has been aggressively expanding in Malaysia, Indonesia, and the Philippines, among many other markets in the region. Its recently announced its plans to expand its presence in 100 cities in Indonesia by the end of this year and invest US$100 million for regional operations over the next five years.
Amit Saberwal, Founder and CEO of RedDoorz, said: “Our growth in 2018-2019 has been exponential. It has been such an important period for us as we were able to set the pace and establish new industry benchmarks in the affordable hospitality segment in Southeast Asia. The journey is just beginning for us and we are very excited about becoming the go-to-choice for quality, predictable and standardised accommodations in the region.”
Founded in 2015, RedDoorz is a technology-driven hotel management company which works with hotels to provide affordable and reliable stay in all major cities and destinations across the region. RedDoorz currently has operations across more than 80 cities in four countries in Southeast Asia, namely Singapore, Indonesia, the Philippines and Vietnam and operates more than 1,200 budget hotels and properties.
Helen Wong, Partner with Qiming Venture Partners, stated: “We have seen the trend of budget hotel chains in China about 15 years ago, and believe that standardised accommodation at affordable prices will appeal to consumers and business travelers in Southeast Asia too. As online penetration of the travel industry grows, RedDoorz will be a key beneficiary with the most extensive network of hotels in the region.”
MNC Group President Director David Fernando Audy, commented: “RedDoorz has a scalable business model and a practical solution for the fast-growing online travel booking industry, especially in Southeast Asia. We will support RedDoorz to grow the brand in Indonesia and overseas.”
RedDoorz has also recently announced that it is on track to achieve one million occupied room nights per month by year-end.
Previously, RedDoorz raised a US$11 million pre-Series B funding round from Asia Investment Fund of SIG, IFC, InnoVen Capital, and Jungle Ventures. Prior to this, the startup raised US$1 million in venture debt from InnoVen Capital in 2017.