Singapore-based budget hotel booking platform RedDoorz today announced that it raised a US$11 million pre-Series B funding round.
In a press statement, the company explained that the funding round came as an additional investment from Asia Investment Fund of Sushquehanna International Group (SIG), International Finance Corporation (the private investment arm of World Bank Group), Temasek Holding-backed InnoVen Capital, and Jungle Ventures, who have invested in past rounds.
DeepSky Capital, FengHe Group, Hendale Capital and other undisclosed investors also participated in the funding round.
RedDoorz also confirmed that it has raised an unannounced US$5 million Series A funding round at the end of 2016, led by that was led by SIG’s Asia Investment Fund, IFC, and Jungle Ventures.
The company plans to use the funding to support its regional expansion plan in Southeast Asia (SEA).
It has recently announced a plan to invest up to US$10 million fuel its expansion in Indonesia, where it currently operates in 16 cities.
Prior to this funding round, it has announced a US$1 million venture debt from InnoVen Capital.
In an email interview with e27, RedDoorz CEO Amit Saberwal explained about the company’s newly launched fully leased and operated hotel property Leased.
Located near Marine Parade in Singapore, the 65-room property is the company’s first foray into running its own hotel business after growing in the franchise and marketer model in the markets it operates in.
“Going into this model will allow us to own the end-customer experience and go up the value chain for improved profitability for RedDoorz. With our own properties, we hope to increase return rates, which at current is around 65 per cent,” Saberwal said.
“Leasing is also a great model for the property owners who are sitting on properties that have probably been handed down to them through family legacy and is not a core business area for them anymore. We partner with these owners and help them keep their business alive and thriving,” he added.
The company plans to launch 100 fully-leased properties and 1,000 franchised properties in the Southeast Asian region this year.
A similar move had also been made by traveltech giant Airbnb, which is set to open its own branded apartment building in Florida in 2019.
Founded in 2015, RedDoorz has a presence in Indonesia, Singapore, and the Philippines. It claimed to have worked with “over” 500 properties and is run by a team of 180 people.
Image Credit: RedDoorz