Southeast Asia becomes a promising market for low-end hospitality services, and the local players keep up: RedDoorz just carried out its Series B round of financing.
A living room. Image credit: Pixabay
Singapore-based budget hotel startup RedDoorz announced its Series B funding round of USD 45 million, led by Chinese VC company Qiming Venture Partners (启明创投). The existing investors (Hendale Capital, International Finance Corporation, and Susquehanna International Group) and MNC Group also joined the party.
With the fresh capital obtained, the four-year-old firm is going to improve its smart pricing algorithms and refine the set of marketing tools in order to further expand in the region. Earlier this year, RedDoorz announced its goal to reach the bar of 1 million occupied room nights per month within 2019.
Prior to this new funding, the company has obtained USD 18.4 million within five investment events, according to Crunchbase. Previous financing round of USD 11 million happened more than one year ago. Since then, the startup began to gather pace by creating partnerships with local hotel chains and fintech companies.
According to RedDoorz's official website, it offers over 1,000 properties in Indonesia, Singapore, Philippines and Vietnam as of July 29.
Over 600 million people live in Southeast Asia. Both international and internal tourism sectors are recently booming, ignited by the growing middle class in the region.