India's Treebo Hotels raises $34m
Treebo, a VC-backed Indian budget hotel chain, has raised $34 million in a Series C funding round led by Hong Kong-based investors Ward Ferry Management and Karst Peak Capital.
Existing investors SAIF Partners, Matrix Partners India and Bertelsmann India Investments also participated. The capital is expected to support service improvements, a team build-out, geographic expansion and marketing efforts focused on brand awareness.
“We don't think that [discounts] can be the arrowhead of our strategy,” Treebo co-founder Sidharth Gupta told The Economic Times. “There’s no doubt that in order to be competitive, we need to be in the same market and be competitive on price as well. But our bet on the market is on experience and building a brand that customers love.”
Founded in 2015, Treebo aims to offer users a higher standard of accommodation than typically seen in India's budget hotel space by partnering with hotels that guarantee amenities such as clean linen and bedding and free Wi-Fi. These partners operate some 300 hotels across 50 cities and are required to work exclusively with Treebo for their room booking services. Support products include apps for hotel management services and customer reviews.
Last year, the company received a $17 million Series B round from Bertelsmann, SAIF and Matrix. SAIF and Matrix also led a $6 million Series A in 2015.
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