Advertisement
Canada markets open in 8 hours 15 minutes
  • S&P/TSX

    21,837.18
    -12.02 (-0.06%)
     
  • S&P 500

    5,149.42
    +32.33 (+0.63%)
     
  • DOW

    38,790.43
    +75.63 (+0.20%)
     
  • CAD/USD

    0.7379
    -0.0010 (-0.14%)
     
  • CRUDE OIL

    82.56
    -0.16 (-0.19%)
     
  • Bitcoin CAD

    88,427.39
    -4,250.06 (-4.59%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,162.50
    -1.80 (-0.08%)
     
  • RUSSELL 2000

    2,024.74
    -14.58 (-0.72%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,182.25
    -49.25 (-0.27%)
     
  • VOLATILITY

    14.33
    -0.08 (-0.56%)
     
  • FTSE

    7,722.55
    -4.87 (-0.06%)
     
  • NIKKEI 225

    39,897.63
    +157.23 (+0.40%)
     
  • CAD/EUR

    0.6787
    -0.0005 (-0.07%)
     

Treebo Hotels raises US$16.67M in funding, plans to expand its network

Treebo Hotels raises US$34M Series C; Can it take on the deep-pocketed OYO Rooms?

The company will use new funds for expansion, marketing, and technology investments

Treeboo Hotels founders

Treebo Hotels, the Bengaluru-based technology-enabled chain of budget hotels, has recently raised US$16.67 million in its Series B funding round led by Bertelsmann India Investments (BII), the strategic investment vehicle of the international media company, Bertelsmann.

The round also saw participation of existing investors, SAIF Partners and Matrix Partners India. Treebo currently has 125 hotels in 25 cities across the country in its network, making it the largest hotel chain in the sub 4-star category. The company plans to use the fresh round of funds for furthering its expansion, strengthening its marketing outreach, and reinforcing its technology leadership in the sector.

ADVERTISEMENT

Treebo aggregates smaller hotels with 10-50 rooms that include essential amenities like clean linen, free wi-fi, complimentary breakfast, branded toiletries, and complimentary beverages, among others. On the hotel side, Treebo helps its partner properties drive occupancies by improving their service standards.

Travellers can expect to find budget hotel rooms within the price range of US$14.89 to US$44.67, with average booking rate at US$29.78. On average, the company manages to reach 75 per cent occupancy rate with its current network of 3,000 rooms.

Also Read: Hotel e-commerce solutions startup Softinn wins Echelon Asia 2016 TOP100

Treebo now plans to expand its footprint to more than 60 cities, and quadruple its current inventory from 3,000+ to 12,000+ keys across 450 properties, over the next 12 months. These cities will include a mix of business and leisure destinations.

The company also plans to launch new brand extensions along the way, including a mid-scale brand and a leisure brand, while maintaining its core proposition of value-for- money across all these brands.

“Bertelsmann is a highly respected name in the venture capital world. They are known for taking a long term view of their investments, and for supporting companies that are building sustainable, value-creating businesses. Further, their vast experience in Media will prove invaluable in helping build the Treebo brand. We couldn’t have asked for a better partner in this journey,” said Rahul Chaudhary, Co-founder, Treebo, in an official press statement.

Founded in 2015, Treebo Hotels derives its name from ‘Bo Tree’, the fig tree under which Gautama Buddha attained enlightenment. The company currently has presence in 22 cities in India.

The post Treebo Hotels raises US$16.67M in funding, plans to expand its network appeared first on e27.