Singapore-based RedDoorz is planning “aggressive regional
expansion” of its budget hotel booking system after securing $11 million in
pre-Series B funding.
The capital comes from past investors Asia Investment Fund of
Susquehanna International Group, International Finance Corporation (the private
investment arm of World Bank Group), InnoVen Capital and Jungle Ventures along
with new investors that include Deep Sky Capital, FengHe Group and Hendale Capital.
Launched in 2015, RedDoorz currently has more than 500
properties across Singapore, the Philippines and Indonesia.
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It consolidates the independent budget properties under the
RedDoorz brand, giving hoteliers access to its online distribution system, data
analytics, marketing and customer service. For travelers, it guarantees that
each property adheres to standards such as free Wi-Fi, satellite television,
clean linens and free mineral water.
“The scale of the Southeast Asia opportunity is
mind-boggling,” says Amit Saberwal, founder and CEO of RedDoorz.
“Our aim has always been to tap into Southeast Asia's $52
billion travel market, which is largely comprised of budget hotels rated three
stars or below. We target to go up the value chain and offer the best predictable
stay experience for our users across the region.”
RedDoorz recently launched its first fully leased and
operated hotel, a 65-room property in Singapore. RedDoorz will manage
day-to-day operations of the hotel and plans to use the new funding to add more
properties in this model.
“With the right team, right set of investors and the right
market opportunity, we are certain that we will be able to grow exponentially
in this region and drive up our existing 65% customer repeat rate,” Saberwal
says.
“We plan to have on board 100 such fully leased properties
and 1,000 franchise properties in this region in the next 18 months.”
“We believe that the Southeast Asia consumer empowerment
trend is very compelling and that RedDoorz has a tremendous opportunity to
aggregate hotel inventory across the region using proprietary technology and
business model innovation,” says Geoff Lee, partner at Hendale Capital.
At the end of 2016, RedDoorz brought in $5 million in a Series
A funding round.