The company, led by CEO Amit Saberwal, brings together budget hotel owners under the RedDoorz banner and books their rooms via an online marketplace. Through the site, hotel owners get access to guests, and travelers can rest assured that RedDoorz-branded hotel rooms have clean sheets, decent internet, and trained staff.
The company launched in Indonesia, before using earlier funding rounds to expand to the Philippines and Singapore, where the company just leased its own hotel to run. In an interview with CNBC, Saberwal said the company is hoping to tap into Southeast Asia’s $52 billion travel market by fulfilling an unmet need—offering hotel rooms to young, domestic travelers.
Investors must like what they see, because the so-called pre-Series A funding round was a success thanks to existing investors like Sushquehanna International Group. Meanwhile, World Bank’s International Finance Corporation teamed up with a handful of newcomers, like DeepSky Capital and FengHe Group. The new cash will let the company expand operations into new cities and new countries, including Thailand, where there are undoubtedly plenty of young travelers looking for budget hotel rooms.