Singapore-based online hotel booking platform RedDoorz has collected $70m in a series C round featuring e-commerce firm Rakuten, Nikkei Asian Review reported today.
Private equity firm Asia Partners led the round, which also included Mirae Asset-Naver Growth Fund, a vehicle formed by internet group Naver and investment firm Mirae Asset Daewoo.
Founded in 2015, RedDoorz has built an online platform where travellers can book stays in more than 1,400 partnered budget hotels providing a uniform offering that includes clean sheets, reliable internet connectivity and safe drinking water.
The company has expanded its operations to more than 80 cities across Indonesia, Singapore, the Philippines and Vietnam. Its platform includes a big data analytics tool that hotel owners can use to predict demand and price their rooms accordingly.
The series C funding will support further expansion efforts, with future markets likely to include Thailand and Malaysia, and will allow RedDoorz to open a second data centre for its business.
The company will also use the cash to fight off competition from India-based rival Oyo, which has committed $200m to expand across Southeast Asia, expanding a network that currently consists of less than 1,300 hotels to some 25,000 by 2023.
RedDoorz has now raised $140m in funding altogether, it said. It closed a $45m series B round last month that included quantitative trading firm Susquehanna International Group (SIG) and media company Media Nusantara Citra.
The series B round was co-led by Qiming Venture Partners and Jungle Ventures, while Hendale Capital, International Finance Corporation (IFC) and a range of unnamed existing backers also participated.
SIG investment vehicle SIG Asia Investments had previously taken part in RedDoorz’s $11m round in March 2018 alongside Jungle Ventures, IFC, Hendale Capital, FengHe Group, InnoVen Capital and DeepSky Capital.
