Online budget hotel brand and booking platform RedDoorz has raised $1 Mn venture debt from InnoVen Capital.
This round is an extension of its Series A round, which it raised in 2016. The round was led by the Asia Investment Fund of Susquehanna International Group (SIG), International Finance Corporation (IFC), the private investment arm of the World Bank Group, and Jungle Ventures. Jungle Ventures had earlier invested in the company’s Pre-Series A round along with 500 Startups in 2015.
Founded by Amit Saberwal and Kumar Asheesh Saxena in July 2015, RedDoorz is a network of almost 500 standardised accommodations in Southeast Asia. The properties are mainly in Indonesia, with its network of hotels across Jakarta, Bali, Bandung, and Surabaya. The company recently launched operations in Singapore and will also be expanding elsewhere in Southeast Asia.
“Venture debt providers look for companies that have well-capitalised equity investors, good cash flows and the ability to repay their debt, so I’m pleased that this partnership with InnoVen shows confidence in the way we execute our business model. As the GDP per capita and disposable income of the local population grows, their spend on travel increases and we are helping provide quality hospitality to this growing segment of consumers,” said Amit Saberwal, founder and CEO of RedDoorz.
As per the founder, in the last one year, the startup’s revenue has grown 12 times. With this additional capital infusion, the team aims to leverage the strength of Southeast Asia’s economies to grow RedDoorz to become the largest online budget accommodation brand in the region.
In January 2016, branded budget-hotel marketplace OYO Rooms marked its entry in the Southeast Asian market with the launch in Malaysia. In July 2016, Bengaluru-based Treebo Hotels raised about $16.7 Mn (INR 112 Cr) Series B funding led by Bertelsmann India Investments (BII), the strategic investment vehicle of the international media company, Bertelsmann. This round also saw participation of existing investors, SAIF Partners and Matrix Partners India. Other startups in this segment include NIDA Rooms, Gonla, PegiPegi.
