Singapore-headquartered budget hotel booking startup RedDoorz is tiny in comparison to fast-rising giant Oyo. However, it’s holding its floor and winning the trust of an ever-rising variety of investors.
On Monday, the four-year-old startup declared it has raised $70 million in Series C financing round, less than five months after it shut its $45 million Series B. The brand new round, which is ongoing, was led by Asia Companions and saw assistance from new investors Rakuten Capital and Mirae Asset.
The startup, which has raised $140 million to date, has been seeing “great interest from buyers, so it is determined to do back-to-back rounds,” stated Amit Saberwal, founder and CEO of RedDoorz, in an interview.
Regardless, the brand new funds will help RedDoorz fight SoftBank-backed Oyo, which is already aggressively growing to new markets. Oyo presently operates in more than 80 international locations.
Oyo doesn’t necessarily threaten Saberwal; on the contrary, he sees Oyo’s success as a testament that there’s room for more players to be in the house. He’s assured that RedDoorz is “heading in the right direction to create the next tech unicorn in Southeast Asia,” and trade in public change in the next two to 3 years.
RedDoorz controls a marketplace of “two-star, three-star and below” budget hotels, selling access to rooms to folks. At the moment, it has 1,400 hotels on its reach, stated Saberwal. By the end of 2019, the startup aims to take this number to 2,000.
The startup operates in 80 cities throughout Indonesia, Singapore, the Philippines, and Vietnam, and plans to use the brand new capital to expand its reach in its existing markets, said Saberwal.