Budget hotel chain Treebo Hotels has raised $34 million (Rs 220 crore) in its Series C funding round led by Hong Kong-based investment firms Ward Ferry Management and Karst Peak Capital, a company statement said.
Existing investors SAIF Partners, Matrix Partners India, and Bertelsmann India Investments also participated in the round, the statement added.
âWe have several breakthrough initiatives in the offing to further enhance the experience we offer to our guests, and the value we create for our franchise partners. This new capital will allow us to invest in these endeavours,â Rahul Chaudhary, co-founder of Treebo Hotels, said.
Treebo will use the new capital for enhancing customer experience, building a stronger brand, strengthening its technology team, and expanding its footprint in existing and new cities, the press note stated.
Ruptub Solutions Pvt. Ltd, the operator of Treebo Hotels, was founded in 2015 by former McKinsey and Myntra executives Chaudhary and Sidharth Gupta and former MakeMyTrip executive Kadam Jeet Jain.
Treebo works with new and existing hotels on a franchise model where Treebo offers its brand name, quality oversight, access to leading vendors, staff training, and sales and marketing expertise to the property.
The Bangalore-based hotel chain operator had raised Rs 112 crore ($16.7 million) last year in its Series B funding round that was led by Bertelsmann India Investments, the strategic investment vehicle of international media company Bertelsmann. Existing investors SAIF Partners and Matrix Partners India also took part in the round.
In 2015, it had raised $6 million in its Series A round of funding co-led by Matrix and SAIF.
Treebo competes with FabHotels and OYO Rooms, besides OTAs such as MakeMyTrip, Yatra, and ibibo Group, which have also entered the hotel aggregation space.
In July this year, FabHotels raised $25 million (Rs 161 crore) in a Series B round led by Goldman Sachs Investment Partners. Existing investor Accel Partners also participated in the round.
Prior to that, OYO Rooms had secured $250 million in a round led by existing investor SoftBank Group.