JAKARTA (TheInsiderStories) – Indonesian company MNC Group joined with Chinese venture capital firm Qiming Venture Partners and other investors injected a Series B round US$45 million to RedDoorz, a hotel management and technology-based room bookings.
Other key investors in the round are existing RedDoorz backers Hendale Capital, International Finance Corporation and Susquehanna International Group. For Qiming, the investment in RedDoorz appears the first time it has ventured outside China in a Southeast Asian company, and comes amid interesting times in the budget accommodation sector.
Helen Wong, a partner at Qiming said, “As online penetration of the travel industry grows, RedDoorz will be a key beneficiary with the most extensive network of hotels in the region.”
RedDoorz, founded in 2015 by former Make My Trip executives Amit Saberwal and Asheesh Saxena, says it has more than 1,200 properties, 800 of which are in Indonesia and the rest in Singapore, Vietnam and the Philippines. End of 2018, RedDoorz had 680 properties and 17,000 rooms, of which 13,600 rooms were in Indonesia, its biggest market.
The management announced that it will reach one million orders in 2019, which is the result of a doubling of business growth every six months. As of July 2019, the company is growing five times larger than year by year with operations in more than 52 cities in four countries in Southeast Asia.
Recently, RedDoorz has reached 500,000 room bookings, being the first in the travel industry category in Southeast Asia, said Founder and CEO, Amit Saberwal.
Driven by the growth of the middle class which will increase to 350 million by 2022, Southeast Asia has a large and growing hotel market that is filled with various growth opportunities. Roshan Raj Behera, business partner at RedSeer consulting company rated that Southeast Asia has more than 120,000 cheap hotels in the three or lower star segments in 2018 – giving RedDoorz the right environment to grow even more.
While, according to Phocuswright, the hotel market in Southeast Asia is three times larger than India’ travel market, and is worth $17 billion and in 2023 it is estimated to reach $23 billion. Limited budget travel is undergoing a massive transformation in Southeast Asia when the millennial generation of middle class adopts travel as a lifestyle with a focus on cost efficiency.
Saberwal added, this region presents interesting opportunities but still presents a challenge to operate because it has different consumer behavior and preferences from city to city, not just the country.
“Technology and data are the main keys that help us overcome such challenges and we are happy to announce that we have doubled our scale every six months over the past two years in a row,” he said in a press statement on July 17.
MNC Group founded by Hary Tanoesudibjo in 1989. Initially, he established as a securities company engaged in financial services PT MNC Investama Tbk (IDX: BHIT), also known MNC Group and now transformed into a leading investment group in Indonesia.
While Qiming founded in 2006 with office in Shanghai, Beijing, Suzhou, Shenzhen and Hong Kong, Seattle, Boston and Palo Alto. Currently the company manages seven US Dollar funds and Five Remimbi Funds with $4 billion assets under management.
Written by Staff Editor, Email: email@example.com
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