Singapore-based budget hotel accommodation firm RedDoorz has raised $70 million (approximately Rs 499.45 crore at current exchange rates) in its Series C round of funding, the company said in a statement on Monday.
The fresh investment was led by the Singapore-based growth equity firm Asia Partners. Existing investors Qiming Venture Partners and International Finance Corporation also participated in the funding round.
RedDoorz will use the funds for market expansion, new products and enhance technology and customer experience apart from setting up its second engineering hub in Vietnam.
Other investors that contributed to the round include Rakuten Capital and Mirae Asset Naver-Asia Growth Fund.
Earlier in April this year, the company had raised $45 million (around Rs 321.07 crore at current rates) in its Series B funding round.
Company chief executive officer Amit Saberwal said the investment was validation of RedDoorz’s business model and growth trajectory. “We see tremendous opportunities to continue growing our platform and expanding into new markets,” Saberwal said.
Separately, Asia Partners co-founders Oliver M Rippel and Nicholas A Nash said the firm was confident in the startup’s ability to be able to take a leading position in the affordable travel segment. “This investment affirms our belief in RedDoorz’s vision and plan for the region,” the two added.
RedDoorz, which is operated by Commeasure Pte. Ltd, was started by former MakeMyTrip executives Amit Saberwal and Kunwar Asheesh Saxena. It offers customers standardised accommodation services. Hoteliers and guest-house owners can showcase their properties on the platform, which gives them a larger audience, and enhances their distribution and streamlines operations.
Initially, the company began its operations in Indonesia. Its current hub is located in India.
In April 2017, the company raised $1 million (around Rs 6.5 crore then) in venture debt from InnoVen Capital. That investment was an extension of its Series A funding in 2016. The Asia Investment Fund of Susquehanna International Group, IFC and Jungle Ventures were among those that participated in that round.
Asia Partners focusses on technology and technology-enabled companies. Rippel and Nash were also involved in Flipkart’s sale to Walmart, according to RedDoorz’s statement.
Rakuten Capital is part of Japan’s Rakuten Group, an internet service company. The firm has invested in businesses across segments, including e-commerce, financial services, digital content and advertising.
Mirae Asset-Naver Asia Growth Fund is a joint $1 billion fund between South Korea’s Mirae Asset Financial Group and Naver Corporation. The fund was established last year to support startups in the Southeast Asia region during their growth stage.