Bengaluru-based budget hotel chain Treebo has raised $34 Million (Rs 220 crore) in a Series C funding round led by Hong Kong-based investment firms Ward Ferry Management and Karst Peak Capital.
Existing investors, Matrix Partners India, SAIF Partners and Bertelsmann India Investments also participated in the round.
Treebo will use the funds to enhance customer experience, build a stronger brand, strengthen its technology team, and to expand its footprint in existing and new cities.
As per a statement put out by its investor Matrix Partners, it is already the highest-rated hotel chain in this segment as per data from review portals like TripAdvisor and Booking.com.
“Ward Ferry and Karst Peak are both seasoned investors in the global markets including in the travel and hospitality space. Between them they have invested in hotel chains, cruise ships, OTAs, F&B chains, duty free shops, and several other sub-segments within the space. We are glad that our approach of building a sustainable, long-term business resonated with them. We feel privileged to have them onboard and look forward to leveraging their experience in driving business growth,” Sidharth Gupta, co-founder, Treebo Hotels said in the statement.
Founded in 2015 by Sidharth Gupta, Rahul Chaudhary, and Kadam Jeet Jain, Treebo Hotels is a technology-enabled budget hotel brand with close to 300 franchisees operating exclusively under its brand across over 50 cities.
It works with new and existing hotels on a franchise model where Treebo offers its brand name, quality oversight, access to leading vendors, staff training, and sales and marketing expertise to the property.
The company offers high-quality accommodation options to travelers in the Rs 1,000-3,000 per night price range.
Rahul adds 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.
Tarun Davda, Managing Director, Matrix India, one of the startup’s early backers said, “As an early investor, we have been witness to the phenomenal growthof Treebo, which has emerged as the highest-rated brand in the budget hotel space. With its differentiated model, Treebo has been able to drive increased economic value to hotel owners through higher occupancy and technology enablement. The founders’ single-minded focus on delivering a consistent, high quality guest experience along with theability to drive scale sets them apart. We welcome Ward Ferry and Karst Peak to the Treebo journey.”
Prior to this round, the company raised a total of $23 million over two rounds from Matrix Partners India, SAIF Partners and Bertelsmann India Investments.