Bobobox Gets Series A Funding 170 Billion Rupiah

Bobobox, known as a startup providing capsule hotel accommodation services, recently announced the acquisition of series A funding of US$11,5 million or equivalent to 170 billion Rupiah. This investment round was led by Horizons Ventures and previous investor Alpha JWC Ventures. Some of the investors involved include Kakao Investments, Sequoia Surge and Mallorca Investment.

Previous funding pre-series A Bobobox has been started since March 2019, when it involved Alpha JWC Ventures, Genesis Ventures, and three other investors. Then in May 2019, the startup from Bandung again received funding from Sequoia Capital India (Surge), Agaeti Ventures, Everhaus, Aplha JWC Ventures, and Ganesia Ventures.

With this additional capital fund, the company will focus on developing features to improve the user experience pods (the name for capsule lodging). In addition, they also plan to strengthen teams in manufacturing and operations, plus expansion to several other countries in Southeast Asia after the Covid-19 pandemic ends.

This funding is interesting, because in the midst of the Covid-19 pandemic, many players in the accommodation and tourism industry have slumped, some even decided stop the business. Bobobox Co-Founder & CEO Indra Gunawan said, "We are grateful and proud to still be able to obtain funding from global investors amidst the shocks caused by Covid-19. economic units healthy in all branches.”

“In my opinion, another factor behind investor confidence in Bobobox is unique selling proposition which enables us to be prepared for the crises and behavioral changes that are emerging from this pandemic, before we even know it will happen. This will also provide benefits for us in the future when technology-based accommodation becomes an industrial need,” he added.

On one last year, bobobox has established six new locations in three cities: Bandung, Jakarta and Semarang. Currently, they operate eight locations for a total of 572 pods and an occupancy rate of 80-90% before the pandemic. After the pandemic it dropped to 50-60%.

During the pandemic it is used as an alternative to stay

In its release, the company explained that the Covid-19 pandemic period also opened up new opportunities. At a time when the tourism industry slowed down, locals became new customers for Bobobox pods. To meet consumer demand and maintain the safety of its staff and customers, Bobobox implements preventive measures, including limiting the number of guests and closing public gathering spaces.

“With additional preventive measures in place, many local residents have chosen to relocate to pods us to support your needs work from home they. Not a few choose the closest Bobobox from their office so they don't have to travel far to avoid crowds and reduce the risk of being exposed to Covid-19," explained Bobobox Co-Founder & President Antonius Bong.

Previously, in collaboration with the Li Ka Shing Foundation, Bobobox also donated 100 sleeping pods to Covid-19 referral hospitals in DKI Jakarta and West Java. Functioned as a resting place for medical personnel on the sidelines of their duties.

“The crisis shows the true state of the company and how strong their business and revenue framework is. The crisis also finally shows which companies are really solid. With satisfactory performance and growth since we first invested in Bobobox in 2018, we believe Bobobox will not only be able to weather the current crisis, but will also become a leading player in the regional tourism industry," said Chandra Tjan, Managing Partner of Alpha JWC Ventures.