SINGAPORE (Reuters) - Singapore’s hotel booking and management platform RedDoorz has raised $70 million in an ongoing funding round, its second this year, as it targets the region’s growing breed of domestic travelers seeking budget accommodation options.
Singaporean private-equity firm Asia Partners led the round, with participation from Japan’s Rakuten Capital and Mirae Asset-Naver Asia Growth Fund, a joint venture between South Korea’s Mirae Financial Group and Naver Corporation (035420.KS), and existing investors, RedDoorz said in a statement.
The company will use the fresh funds to launch in new markets, boost hotel staff training programs and build a technology hub in Vietnam, its second after India.
RedDoorz, which was founded in 2015, had raised $45 million in a series B round in April, led by Chinese venture capital firm Qiming Venture Partners. It did not provide a valuation.
The company works with small hotel owners to provide training to staff, and ensure standard service and facilities across the properties. It brings the fragmented hotels under a RedDoorz brand and markets them through its platform. It works under revenue-share agreements with them.
RedDoorz competes with the likes of India’s OYO, which is backed by Softbank Group (9984.T) and is rapidly expanding overseas.
“600 million people are getting affluent, purely from an opportunity standpoint, it is reaching a scale which can far surpass many of the more better known markets, in many ways, including India,” its Chief Executive and founder Amit Saberwal said.
The company plans to have 2,000 hotels by the end of this year and 15,000 hotels in Southeast Asia by 2022, from 1,400 at present, added Saberwal, who was previously with Indian travel booking site MakeMyTrip Ltd (MMYT.O).
Reporting by Aradhana Aravindan; Editing by Rashmi Aich