Treebo, an India-based budget hotel room booking platform, has secured Rs1.12bn ($16.6m) in a series B round led by Bertelsmann India Investments, the local corporate venturing unit of publisher Bertelsmann.
Venture capital firms SAIF Partners and Matrix Partners India also contributed capital to the round, which was sized below the rumoured size of $20m to $25m initially reported earlier in July. Treebo previously received $6m in capital from SAIF and Matrix in June 2015.
Founded in February 2015, Treebo partners small budget hotels and rebrands them as Treebo Hotels, differentiating itself from rival Oyo Rooms, which raised $61m from investors including SoftBank earlier this month and only takes over a few rooms.
The rooms come at an average price of Rs1,000 to Rs3,000 and offer standard amenities such as complimentary breakfast and beverages, free wifi and branded toiletries. Treebo conducts quality control checks through mystery shoppers who enjoy a free stay in return for feedback.
On the business end, Treebo operates a mobile app dubbed Bumblebee that helps managers conduct day-to-day operations.
To date, the company has partnered 125 hotels across 25 cities. It will use the series B funding to expand into more than 60 locations across India, boost its marketing efforts and strengthen its market position by launching a mid-scale and a leisure-themed brand.