Singapore's RedDoorz Raises US$70 Million to Target Budget Travellers

Singapore's RedDoorz Raises US$70 Million to Target Budget Travellers

Singapore's hotel booking and management platform RedDoorz has raised US$70 million in an ongoing funding round, its second this year, as it targets the region's growing breed of domestic travellers seeking budget accommodation options, Channel News Asia reported. 

Singaporean private-equity firm Asia Partners led the round, with participation from Japan's Rakuten Capital and Mirae Asset-Naver Asia Growth Fund, a joint venture between South Korea's Mirae Financial Group and Naver Corporation, and existing investors, RedDoorz said in a statement.

The company will use the fresh funds to launch in new markets, boost hotel staff training programmes and build a technology hub in Vietnam, its second after India. Currently, the startup operates in 80 cities across Indonesia, Singapore, the Philippines and Vietnam.

RedDoorz app. Image: Tech Cruch
RedDoorz app. Image: Ray Chua/Asia PR Werkz


The latest funds will help Saberwal fend off SoftBank-backed Indian lodging startup Oyo Hotels and Homes, which plans to pour $100 million into Indonesia -- the largest market for RedDoorz -- as part of a global foray that encompasses the U.S.

Both startups are riding a surge in independent travel as younger Asians grow more affluent and develop a taste for going it on their own. By 2022, Southeast Asia should host a middle class of 350 million, according to Bain & Co. There are 125,000 budget hotels in the three-star or below segment and RedDoorz aims to grab 2,000 of those by the end of this year.

Similar to Oyo, RedDoorz signs on budget hotel owners, provides them with software and standardized supplies, and trains their staff. They split the revenue. Unlike Oyo, Saberwal said he prefers to focus on Southeast Asia. He’s gearing up to enter Malaysia and Thailand this year before expanding to other nations like Cambodia.

RedDoorz. Image: Channel News Asia
RedDoorz. Image: Channel News Asia


The startup, which has raised $140 million to date, has been seeing “tremendous interest from investors, so it is decided to do a back-to-back rounds,” said Amit Saberwal, founder and CEO of RedDoorz, in an interview with TechCrunch.

Saberwal wants to build a company with a valuation of $1 billion by next year, possibly $5 billion in two to three years, by which time he hopes to take RedDoorz public.

“It is an entrepreneur’s dream to take his or her company to a logical conclusion. And I think the most logical way for us to do is an IPO,” he said to Bloomberg.


Indah Gilang Pusparani

Indah is a researcher at Badan Perencanaan Pembangunan Penelitian dan Pengembangan Daerah Kota Cirebon (Regional Development Planning and Research Agency of Cirebon Municipality). She covers More international relations, tourism, and startups in Southeast Asia region and beyond. Indah graduated from MSc Development Administration and Planning from University College London, United Kingdom in 2015. She finished bachelor degree from International Relations from University of Indonesia in 2014, with two exchange programs in Political Science at National University of Singapore and New Media in Journalism at Ball State University, USA. She was awarded Diplomacy Award at Harvard World Model United Nations and named as Indonesian Gifted Researcher by Australian National University. She is Researcher at Regional Planning Board in Cirebon, West Java. She previously worked as Editor in Bening Communication, the Commonwealth Parliament Association UK, and diplomacy consulting firm Best Delegate LLC in USA. Less
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