RedDoorz, an online budget hotel brand and booking platform, has raised an additional $1 million in venture debt from InnoVen Capital, a venture lending firm owned by Singapore’s Temasek Holdings and United Overseas Bank.

This is an extension of its Series A round, led by the Asia Investment Fund of Susquehanna International Group (SIG), International Finance Corporation (IFC), the private investment arm of the World Bank Group, and Jungle Ventures, raised in 2016.

Jungle Ventures had earlier also invested in the pre-series A round along with 500 Startups in 2015.

RedDoorz was established in 2015 with the vision of creating a brand of quality budget accommodation that promises travellers a consistent experience. The company has about about 500 properties, mainly in Indonesia, with its network of hotels across Jakarta, Bali, Bandung and Surabaya.

“As the GDP per capita and disposable income of the local population grow, the spend on travel increases and we are helping provide quality hospitality to this growing segment of consumers,” said Amit Saberwal, founder and chief executive officer of RedDoorz.

“In the last one year, our revenue has grown 12 times while maintaining best-in-class unit economics, and with this additional funding, we aim to leverage the strength of Southeast Asia’s economies to grow RedDoorz to become the largest online budget accommodation brand in the region,” he added.

Southeast Asia’s market size for online hotel bookings will increase from $6.6 billion in 2015 to $36.4 billion by 2025 with a 19 per cent compound annual growth, according to a Google study.

rajesh.kurup@thehindu.co.in

Related Topics
comment COMMENT NOW