Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Delhi-based budget hotel marketplace ZO Rooms has raised $30 Mn (INR 192 Cr.) in a funding round led by its existing investors, Tiger Global Management and Orios Venture Partners. This round for Zo Rooms comes in just a few weeks after it had grabbed an undisclosed amount in its Series A round.
The funding will be used to expand its presence across the country.
Under Zostel brand, the startup is planning to expand the chain of backpacker hostels to over 40 in the next three months. Paavan Nanda, co-founder of ZO Rooms told ET, “We lay strong emphasis on building a great company culture as we scale. We have invested a lot of time and effort in building robust processes that shall help us deliver a great experience to each and every guest who stays with us.”
Founded in 2014 by Paavan Nanda, Dharamveer Chouhan, Tarun Tiwari, Akhil Malik, Abhishek Bhutra, Chetan Chauhan and Siddharth Janghu, Zo Rooms provides comfortable accommodation at a location of customer’s preference, anytime and at affordable prices. They charge about INR 1,000 per night. Currently, Zo Rooms is operational in 35 cities with more than 400 hotels.
The company is adding 5 hotels everyday and is launching in 2 new cities every week. Zo Rooms aims to have around 2,000 hotels in 60 cities by December 2015.
The company had previously raised $1 Mn from Sol Primero.
The news of this round of ZO Rooms comes just two days after rival OYO Rooms announced $100 Mn (INR 641 Cr.) round from SoftBank.
In past few months, a number of startups have been launched in this particular space. These includes Wudstay Hotels, Zen Rooms, Zip Rooms, FabHotels and GoStays. Treebo Hotels raised $6Mn from Matrix Partners India and SAIF Partners and Wudstay.com raised $3 Mn from Mangrove Capital Partners and Vikas Saxena.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.