Treebo Hotels raises Rs. 112 crore in Series B funding
New Delhi, July 23 : Treebo Group of Hotels, the Bengaluru-based technology-enabled chain of budget hotels, has raised Rs. 112 crore in its Series B funding round led by Bertelsmann India Investments (BII), the strategic investment vehicle of the international media company, Bertelsmann. The round also saw participation of existing investors, SAIF Partners and Matrix Partners India. "Treebo is serving a huge unmet need in the budget travel space - that of reliable and affordable accommodation. Over the last one year, they have maintained razor sharp focus on delivering a great guest experience, and have extensively deployed technology in all parts of their operations to accomplish this objective. We are excited to partner them in a journey towards building the most loved consumer brand in the hospitality space," said Managing Director of Bertelsmann India Investments, Pankaj Makkar. Founded in 2015 by Sidharth Gupta, Rahul Chaudhary, and Kadam Jeet Jain, Treebo currently has 125 hotels in 25 cities across the country in its network, making it the largest hotel chain in the sub 4-star category. The company plans to use the fresh round of funds for furthering its expansion, strengthening its marketing outreach, and reinforcing its technology leadership in the sector. "Bertelsmann is a highly respected name in the venture capital world. They are known for taking a long term view of their investments, and for supporting companies that are building sustainable, value-creating businesses. Further, their vast experience in Media will prove invaluable in helping build the Treebo brand. We couldn't have asked for a better partner in this journey," said Co-founder Treebo, Rahul Chaudhary. Treebo offers guaranteed-quality accommodation to travelers in the Rs. 1,000-3,000 price range. Its properties come with all essential amenities like clean linen, free wi-fi, complimentary breakfast, branded toiletries, and complimentary beverages, among others. On the hotel side, Treebo helps its partner properties drive high occupancies by improving their service standards, and by bringing them under the Treebo brand. Mayank Khanduja, Principal, SAIF Partners, which was one of the early investors in Treebo, said, "When we first invested in Treebo it was because of the quality of the founding team, and the clarity of their approach. One year later, we are really glad to see the team sticking to the same approach, and seeing success with it. "Treebo has become a trusted partner of the hotels it works with, and has shown the way to the industry by building an experience-focused brand, which others would want to emulate," added Khanduja. The latest infusion of funds takes the total capital raised by the company till date to Rs. 150 crore. Investec India was the exclusive financial adviser for the company for this fundraise. Treebo now plans to expand its footprint to more than 60 cities, and quadruple its current inventory from 3,000+ to 12,000+ keys across 450 properties, over the next 12 months. These cities will include a mix of business and leisure destinations. The company also plans to launch new brand extensions along the way, including a mid-scale brand and a leisure brand, while maintaining its core proposition of value-for-money across all these brands.