Treebo Hotels, a Bangalore-based online budget hotel aggregator has raised $34 Million (Rs 220 crore) in its Series C funding round led by Hong Kong-based investment firms Ward Ferry Management and Karst Peak Capital. Existing investors, SAIF Partners, Matrix Partners India, and Bertelsmann India Investments also participated in the round.
Treebo said in a statement that it will invest the fresh funds into enhancing customer experience, building a stronger brand, strengthening its technology team, and expanding its footprint in existing and new cities. The platform currently has close to 300 franchisees operating under its brand across in about 50 cities.
Treebo’s previous funding
With this round the company has raised a total of $57M in three rounds from multiple investors:
Series B: In July last year, Treebo secured funding of Rs 112 crore (~$16.7M) and said that it will use the funding for expand to more than 60 cities and increasing its inventory 12,000 rooms. It said that it plans to launch a product extension including mid scale and leisure rooms, expanding from its current portfolio of budget rooms.
Series A: In June 2015, Treebo raised around $6 million in funding from SAIF and Matrix.
The company was started in the same year by former Myntra executives Siddharth Gupta and Rahul Chaudhary, along with Kadam Jeet Jain.
Treebo competes with numerous place in budget hotel space, which include OYO Rooms, FabHotels, MakeMyTrip – GoIbibo, Paytm, Booking.com, Hotels.com, Yatra, Airbnb, and others to name a few.
Last month, Gurgaon-based online budget hotel aggregator FabHotels secured Series B funding of $25 million from Goldman Sachs and Accel Partners. With the fresh funding, the company is looking to double the number of hotel rooms on its platforms, and strengthen its presence in select cities.
In June, Airbnb tied-up with Maharashtra Tourism Development Corporation (MTDC) to list MTDC home stays on its platform. It also had signed a MoU with Self-Employed Women’s Association of India (SEWA) to expand its network of homes in rural India, in November last year.
In May, OYO Rooms also forayed into hotel chain segment. Also, OYO Rooms is reported to close its second round of funding of $250 million from Softbank soon.