[Funding alert] RedDoorz raises $70M in first close of Series C round led by Asia Partners
The new capital will be used by Singapore-based RedDoorz for market and product line expansions, and to build a second tech hub in Vietnam among other growth initiatives.
RedDoorz, Southeast Asia’s hotel management and booking platform, on Monday announced it has raised $70 million as first close of its Series C funding led by Asia Partners, a Singapore-based growth equity firm.
Two other funds, Rakuten Capital and Mirae Asset-Naver Asia Growth Fund, along with existing investors Qiming Venture Partners and International Finance Corporation (IFC) also joined the round.
Founded by two former MakeMyTrip senior executives Amit Saberwal and Asheesh Saxena, RedDoorz will use the funds 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, the company said in a release.
Amit Saberwal, Founder and CEO of RedDoorz, said,
“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.”
The startup’s Series C investment follows shortly after RedDoorz announced its Series B funding of $45 million in April 2019. The new funding brings the total amount of funds raised by the company to approximately $140 million since its launch in 2015.
The company also plans to 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. RedDoorz marks it as its first portfolio company.
Oliver M Rippel and Nicholas A Nash, Co-founders and Partners of Asia Partners, said,
“Our mission is to help build and mentor Southeast Asia’s next generation of tech unicorns. Our team has a unique combination of investing and operating skills to help companies such as RedDoorz become true market leaders. This investment affirms our belief in RedDoorz’s vision and plan for the region.”
Rakuten Capital, the corporate venture arm of Japanese Internet services giant Rakuten Group, has invested in regional leading companies such as Gojek, Carousell, and Shopback. The Mirae Asset-Naver Asia Growth Fund, a joint venture between Seoul-based Mirae Financial Group and Internet company Naver Corporation, counts HappyFresh and BigBasket as portfolio companies and also recently participated in Grab’s $1 billion Series H round.
Indian hospitality unicorn OYO also recently forayed into Vietnam with 90 franchised hotels across six cities including Hanoi, Ho Chi Minh, Da Nang, Phu Quoc, Vang Tau, and Nha Trang, as it continues to strengthen its presence in Southeast Asia.
The company has a total of 19,750 rooms spread across 80 cities in Indonesia. Philippines and Malaysia also reported continuing growth in assets under management with 8,000 and 1,300 exclusive rooms, respectively.
Other budget hotel players in the Southeast Asian markets include ZenRooms (by Rocket Internet), Bespoke Hotels, Nida Rooms, and Tune Hotels.
(Edited by Megha Reddy)