Southeast Asian hotel management startup RedDoorz raises $115 million
The company plans to use the funding to launch in new markets and strengthen its leadership position in the region.
Hotel management startup RedDoorz receives fresh $70 million investment, led by Asia Partners along with Rakuten Capital and Mirae Asset-Naver Asia Growth Fund.
RedDoorz, which is Southeast Asia’s largest and fastest-growing hotel management and booking platform, recently announced that it raised $70 million at the first close of a larger Series C funding round.
Leading this investment round is Asia Partners, which is a Singapore-based growth equity firm that was founded by senior executives with impressive track records in the region and across the globe. RedDoorz is actually the very first portfolio company for Asia Partners, which has a focus on growth-stage investments in tech companies in Southeast Asia.
Asia Partners, however, is not alone. Two other leading funds, Rakuten Capital and Mirae Asset-Naver Asia Growth Fund, also joined the round, adding to the existing investors Qiming Venture Partners and International Finance Corporation (IFC), which reiterated support by participating in this round, too.
The timing of the round is also telling. The Series C investment came soon after RedDoorz announced Series B funding of $45 million in April.
The total raised by the company is now roughly $140 million since it launched in 2015, making it the best-funded company in the realm of affordable online accommodations in the region.
Plans for the Money
The question next is: what will RedDoorz do with these investments.
The company plans to use the funding to launch in new markets and scale technology, customer experience projects, people and marketing investments to further strengthen its leadership position in the region. A significant portion of the latest proceeds will be used to build a second engineering hub in Vietnam, which will complement the current regional tech hub based out of India.
In addition to all of that, RedDoorz will also ramp up its hotel staff and quality training programmes across all properties in Singapore, Indonesia, Vietnam and the Philippines as it helps employ approximately 10,000 people across the region through its hotel partners.
The lead investor for this round, Asia Partners, was launched in 2019 by a team of senior executives who were involved in two of emerging Asia’s most notable exits: the largest IPO (initial public offering) for a Southeast Asia startup (Sea Ltd.) and the largest tech cash exit in Asia’s history (Flipkart’s sale to Walmart).
“We are thrilled to welcome a new group of seasoned investors joining us in our mission to build the leading tech-enabled affordable travel brand in Southeast Asia,” said Amit Saberwal, Founder and CEO of RedDoorz.
“This new round is a testament to our strong business growth and market leadership position we were able to build during the last few years. RedDoorz operates in some of the most dynamic markets in the world and we see tremendous opportunities to continue growing our platform and expanding into new markets,” he added.
More About RedDoorz
RedDoorz has often been described as Southeast Asia’s fastest-growing company, one with a technology-driven hotel management focus. Its goal is to offer affordable accomodations to all travellers, with a vision of enabling more people than ever before to travel and find reliable stays in major cities and destinations in the region.
RedDoorz is disrupting the hospitality industry by, essentially, transforming fragmented supply inventory into branded, standardized accommodations. It’s also leveraging its mobile app and digital channels to drive stronger consumer demand.
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