RedDoorz Gets Series A Funding Worth 13,3 Billion Rupiah

Today reservation provider platform budget hotels RedDoorz announced that it has successfully secured $1 million (or IDR13,3 billion) in funding from InnoVen Capital, a joint venture of Singapore's Temasek Holdings and UOB Bank. This is a follow-up funding after the previous one RedDoorz booked series A funding in 2016 led by Asia Investment Fund, World Bank Group and Jungle Ventures.

In the early days of its establishment, in 2015, RedDoorz also had the opportunity get pre-series A of 500 Startups. The company's mission to provide a range of accommodation budget with maintained quality leads to investor confidence. Currently RedDoorz claims to have 500 channels budget hotels spread over the areas of Jakarta, Bali, Bandung, and Surabaya.

"We are proud to work with InnoVen, who believes in our business model because capital lending companies only look for companies that have healthy cash flows and the ability to repay loans. The budget for travel also increases along with the growth of income per capita and the spending ability of local people, and we address their needs by providing quality accommodation," said RedDoorz Founder & CEO Amit Saberwal.

The funding will be focused on increasing its business growth and maturation brand RedDoorz in Southeast Asia market share. Increasing demand for trend services online travel agencies (OTA) especially in segmentation budget hotels claimed to have brought RedDoorz a 12-fold increase in revenue to date.

According to research conducted by Google, the online hotel room booking market in Southeast Asia will increase from $6,6 billion in 2015 to $36,4 billion in 2025 with an increase of 19 percent annually.

Previously with a greater value, RedDoorz direct urine ie NIDA Rooms also recently secured a series A funding of $5,6 million from Shanda Group and several other Southeast Asian investors. With the same goal, the funding is also focused on maturing the presence of NIDA Rooms as a specialist hotel budget in Indonesia and Southeast Asia.

Meanwhile, other players such as Airy Rooms, ZUzu Hotels and Zeen Rooms also continue to try to develop their business in Indonesia. One of the strategies being promoted is by partnering with local OTAs, such as those done by AiriRooms and Traveloka. Meanwhile, Zen Rooms has a slightly different strategy, which is to try to focus on corporate consumer and long-term consumers. Multiple partnerships with online marketplace also been run by some players budget hotels online in Indonesia.