Treebo Hotels has today raised $34 million in its Series C funding round from Hong Kong-based hedge funds Ward Ferry Management and Karst Peak Capital.
Along with them, existing investors SAIF Partners, Matrix Partners India, and Bertelsmann India Investments, have also participated in this new funding round.
Commenting on this fund raise, Sidharth Gupta, Co-founder, Treebo Hotels, says,
In the past two years Treebo has grown and transformed into what it is and our focus will remain on building budget hotels. One of the biggest focus areas of this fundraiser will be to ensure a better customer service experience at our hotels. We’ve been experimenting with different models in pockets of cities like Bengaluru where our hotel density is higher. We intend to expand that to other cities.
Rahul Chaudhary, co-founder of the company, says that Treebo has several breakthrough initiatives in the offing to further enhance customer experience and this new capital will allow Treebo to invest in these grand plans.
Treebo was launched in the year 2015 with a full inventory-based model. It takes over the running of its partner hotels, which operate like franchises. This gives it more control over the quality of customer experience.
It is a technology-enabled budget hotel brand with close to 300 franchisees operating exclusively under its brand across over 50 cities. The company offers high-quality accommodation options to travelers in the Rs 1,000-3,000 per night price range.
The company had earlier raised a capital of $23 million from SAIF Partners, Matrix Partners and Bertelsmann in two rounds of funding. With this additional infusion of funds, the total amount of funding that the Bengaluru-based budget hotel brand has raised stands at $57 million.
In this space, Treebo Hotels is competing against the likes of Oyo Rooms and Fab Hotels, which has recently raised $8 million in Series A round.