The Series B funds will be used to accelerate growth in the region’s affordable accommodation segment
Singapore, 29 July 2019 – RedDoorz, Southeast Asia’s largest and fastest-growing hotel management and booking platform, announced today the successful fundraise of US$45 million in a Series B round. The Singapore-based startup 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.
The new round of funding was led by Chinese venture capital firm Qiming Venture Partners alongside Jungle Ventures and its network of limited partners. The round also includes new investors MNC Group (the leading media company in Indonesia) and saw continued support from Susquehanna International Group, Hendale Capital, International Finance Corporation and others. The company intends to use the new amounts to aggressively pursue growth strategies and further increase its lead in the region’s hospitality segment.
In the Philippines RedDoorz garnered over 150 properties in over 10 cities within just one year of operation. Besides Metro Manila, Cebu, Pampanga, Tagaytay and Davao, new areas have been opened up in Bacolod, Iloilo, Palawan and Baguio, with over 3 million customers served.
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. We are still deeply committed to our vision of empowering the local hospitality owners and connecting them with a growing base of customers who are using our platform to discover new destinations and travel more. 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”.
Helen Wong, a partner with Qiming Venture Partners, said of the new investment, “We have seen the trend of budget hotel chains in China about 15 years ago, and believe that standardized accommodation at affordable prices will appeal to consumers and business travelers in SE 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. The company has executed well to become number 1, delivering strong value to hotel owners in user acquisition, technology and customer service. We look forward to working together with them and sharing our learnings from the China market”.
Commenting on the new strategic partnership and investment with RedDoorz, MNC Group President Director David Fernando Audy said, “MNC is delighted to have the opportunity to participate in this funding round. We believe the company’s track record in the online accommodation booking and hotel management is a brilliant solution for the independent hotel owners across Indonesia and provides great value for mass market nationwide customers. RedDoorz has a scalable business model and a practical solution for the fast-growing online travel booking Industry, especially in South East Asia. We will support RedDoorz to grow the brand in Indonesia and overseas.”
Anurag Srivastava, co-founder and managing partner of Jungle Ventures, said of the series B raise: “We are proud to reiterate our support for RedDoorz, on its mission to deliver quality accommodations for Southeast Asia. RedDoorz has consistently outcompeted its rivals and over-delivered on the expectations of all stakeholders, in building this business. We look forward to RedDoorz’s continued success and value-creation for the region.”
RedDoorz has also recently announced that it is on track to achieve one million occupied room nights per month by year-end. As of July 2019, RedDoorz is growing five times year-on-year and it has already reached 500,000 occupied room nights, an industry-first in Southeast Asia’s travel and hospitality category.