Delhi-based, budget hotels marketplace Zo Rooms has raised an undisclosed amount in series A round from Tiger Global along with Orios Venture Partners. However, ET has reported that the amount raised is about $5 Mn.
On this development, Paavan Nanda, co-founder at Zo Rooms, said “We would primarily be investing in capturing a strong leadership position in the market. Majority of the use of proceeds are going to be in building a strong brand, marketing, bolstering technology and ground operations.”
Founded in 2014 by Paavan Nanda, Dharamveer Chouhan, Tarun Tiwari, Akhil Malik, Abhishek Bhutra and Chetan Chauhan and Siddharth Janghu, Zo Rooms provides comfortable accommodation at a location of customer’s preference, at anytime and at affordable prices. Like most others, they charge around INR 1,000 per night. Currently, Zo Rooms is operational in 30 cities with more than 400 hotels.
The country is short of 2,00,000-3,00,000 budget rooms in the price range of INR1,000-3,000. The company has partnered with small 15-20 room independently run hotels across the country and converted them into standardised, branded Zo Rooms, so that the budget traveller has a consistent experience at all of our properties.
As per the company, it as adding five hotels everyday and launching in two new cities every week. The company also claims to have around 2,000 hotels in 60 cities by December 2015.
Zo Rooms previously raised $1 Mn from Malaysian early stage investment fund, Sol Primero.
Oyo Rooms is the biggest competitor for Zo Rooms as they have reportedly raised about $100 Mn from SoftBank Corp and other investors.
Other players in this space include Stayzilla, an online hotel booking platform, had raised $20 Mn in Series B funding from Nexus and Matrix Partners and another budget accommodation startup, Fabhotels secured $5 Mn funding from Accel Partners and Kalaari Capital.
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