Singapore-based hospitality solutions provider ZUZU HS today announced that it has raised a S$2.6 million (US$1.9 million) seed funding round led by Wavemaker Partners, which had recently closed its Southeast Asia-focussed fund at an oversubscribed value of US$66 million.
The startup also named Golden Gate Ventures, Alpha JWC, and Convergence Ventures as new investors; Former Hilton President Paul Brown, and existing investors Goodman Capital also participated in the current round.
In a press statement, ZUZU HS stated that they will use the new funding for product development, especially its revenue management technology, that will enable the company to deliver a “Software and a Service” model to hotel partners.
The startup provides sales and marketing solutions for independent economy hotels. The service that it offers involve online distribution, revenue management, bookkeeping, and procurement with the goal to help independent budget hotels increase their revenue.
Travellers are able to book rooms at a budget hotel through its desktop platform, and ZUZU HS claimed to have partnered with 150 hotels in Asian countries such as Taiwan, India, and Thailand.
Founded by former Expedia employees Dan Lynn and Vikram Malhi, it has previously raised a US$1 million angel investment round in 2016.
“The opportunity in front of us is big … We’re thankful for the support we’ve received this round and are eager to put it to work,” Malhi said.
In the Asian hospitality sector, the budget hotels market segment has been seeing increasing popularity, together with the growth of middle class in various Asian markets such as Indonesia.
In an AMA session with e27, CEO of budget hotel booking platform RedDoorz Amit Saberwal explained that their changing expectations and aspirations have actually driven the business.
“I think this trend will last in the next 10-15 years,” he wrote.
As competition gets tougher, we have also begun to see some players entering a pivot, such as Jakarta-based Tinggal, which is set to release a SaaS platform called PrimeOptimax by end of year.