RedDoorz is faces strong competition from Softbank-backed OYO.
RedDoorz, a Singaporean hotel booking and management platform, has raised $70 million in its ongoing funding round. This is its second funding round so far in 2019.
Asia Partners, a Singaporean private-equity firm is leading the funding round, which also saw the participation of Mirae Asset-Naver Asia Growth Fund, a joint venture between South Korea’s Mirae Financial Group, Japan’s Rakuten Capital, and Naver Corporation along with existing investors, said RedDoorz in a statement.
RedDoorz said, it will use the fresh funds to increase its footprint in new markets, increase its hotel staff training programs as well as build a technology hub in Vietnam – its second after India.
RedDoorz, which was founded in 2015, had raised $45 million in a series B funding in April which was led by China’s Qiming Venture Partners, a venture capital firm.
The company, which works under revenue-share agreements with small hotel owners, provides training to staff to ensure standard service and facilities across properties. It provides a platform for fragmented hotels under its RedDoorz brand and provides marketing services for them as well.
India’s OYO which is expanding rapidly in overseas market, is backed by Softbank Group; OYO is RedDoorz’s competitor.
“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,” said Amit Saberwal, RedDoorz’s founder and Chief Executive Officer.
Saberwal went on to add, RedDoorz plans to have 2,000 hotels by the end of 2019, and 15,000 hotels, up from 1,400, in Southeast Asia by 2022.