RedDoorz raises $70 million from Asia Partners, others2 min read . Updated: 19 Aug 2019, 11:14 AM IST
- This round was the first close of a larger Series C funding
- RedDoorz will use the new funds to launch in new markets and scale technology
Bengaluru: RedDoorz, a hotel management and booking platform, on Monday said it raised $70 million in its latest round of funding led by Asia Partners, a Singapore-based growth equity firm. Rakuten Capital and Mirae Asset-Naver Asia Growth Fund have also joined the round.
The company’s existing investors Qiming Venture Partners and International Finance Corporation (IFC) also participated in the round.
This round is the first close of a larger Series C funding, the company said in a statement. The startup’s Series C investment follows shortly after RedDoorz announced its Series B funding of $45 million in April 2019. The new funding brings the total amount of funds raised by the company to approximately $140 million since its launch in 2015.
“We are thrilled to welcome a new group of seasoned investors joining us in our mission to build the leading tech-enabled affordable travel brand in Southeast Asia. RedDoorz operates in some of the most dynamic markets in the world and we see tremendous opportunities to continue growing our platform and expanding into new markets," said Amit Saberwal, founder and chief executive of RedDoorz, in a statement. “We believe we are on the right track to create the next tech unicorn in Southeast Asia," he added.
RedDoorz has a business model that is similar to OYO’s. RedDoorz collaborates with budget hotel owners, offering them technology software and standardised supplies. It also trains their staff on hospitality etiquettes. The startup splits the revenue generated with the hotel owner.
RedDoorz will use the funds to launch in new markets and scale technology, customer experience projects, people and marketing investments to further strengthen its leadership position in the Southeast Asia region. A significant portion of the latest proceeds will be used to build a second engineering hub in Vietnam which will complement the current regional tech hub based out of India. It also focuses on advancing technology innovation projects such as RedFox, its proprietary dynamic pricing and inventory management system.
The company also plans to ramp up its hotel staff and quality training programmes across all properties in Singapore, Indonesia, Vietnam and the Philippines as it helps employ nearly 10,000 people across the region through its hotel partners.
The lead investor for this round, Asia Partners, was launched in 2019 by a team of senior executives who were involved in two of emerging Asia’s most notable exits: the largest IPO (initial public offering) for a Southeast Asia startup (Sea Ltd) and the largest tech cash exit in Asia’s history (Flipkart’s sale to Walmart).
“Our mission is to help build and mentor Southeast Asia’s next generation of tech unicorns," said Oliver M. Rippel and Nicholas A. Nash, co-founders and partners of Asia Partners.
Rakuten Capital, the corporate venture arm of Japanese Internet services giant Rakuten Group, has invested in regional leading companies such as Gojek, Carousell and Shopback. The Mirae Asset-Naver Asia Growth Fund, a joint venture between Seoul-based Mirae Financial Group and internet company Naver Corp, counts HappyFresh and BigBasket as portfolio companies and also recently participated in Grab’s $1 billion Series H round.