Ruptub Solutions Pvt Ltd, which operates hotel and hospitality chain Treebo Hotels, has raised $6 million (about Rs 44 crore) in funding from existing investors.
Participants in this round include Matrix Partners India, SAIF Partners, Ward Ferry, and Bertelsmann India Investments, Bengaluru-based Treebo Hotels said in a statement.
The company says the investment will help strengthen itself against the coronavirus pandemic, which has had a major impact on the travel sector. It will also use some of the capital for product and technology enhancement.
“While Covid-19 has delayed our breakeven timeline, we are confident about the long-term prospects of the business and, once things get better, I am confident we will resume our march towards profitability,” Treebo Hotels co-founder Sidharth Gupta said.
The company was set up in 2015 by Gupta, Rahul Chaudhary, and Kadam Jeet Jain. It currently has a portfolio of more than 600 hotels in over 100 cities. It divides offerings into economy, standard, and premium segments.
Last year, it also launched a software-as-a-service (SaaS) unit, Hotel Superhero, to monetise its technology through sales to independent hotels and chains.
“As long-term investors, we have always been amazed with the deep execution demonstrated by Treebo Hotels management before and during Covid-19 times and have a strong view of the business in the future,” Bertelsmann India managing director Pankaj Makkar added.
According to VCCEdge, the data research arm of Mosaic Digital, Treebo Hotels reported consolidated net sales of Rs 67.8 crore for the 2018-19 financial year.
In July, it raised $1.37 million (around Rs 10.26 crore) from a clutch of angel investors including Paytm founder Vijay Shekhar Sharma and Rebel Foods co-founder Jaydeep Barman.
In January, the firm raised a little under $500,000 from Bennett Coleman and Company Ltd (BCCL), the parent of the Times Group.
In August 2017, Treebo Hotels raised $34 million (around Rs 220 crore) in its Series C round. That exercise was led by Hong Kong-based Ward Ferry and Karst Peak Capital. SAIF, Matrix and Bertelsmann also participated.