Singapore VC-backed hotel chain gains $15m strategic investment

Yanolja will take a significant minority stake in Zen, according to a release, with the right to acquire 100% of the company in the future. Zen will use the new capital to expand its hotel room inventory in current markets, grow into new markets, and invest in its technology platform.

Founded in 2015 by Kiren Tanna and Nathan Boublil, both formerly of Rocket Internet, Zen operates an economy hotel chain and online booking platform in Indonesia, Malaysia, the Philippines, Thailand, and Singapore. The company currently has seven thousand rooms across its branded and franchised hotels, aiming to offer travelers a consistent, quality experience.

Zen was initially incubated by Rocket Internet, but last year raised a $4.1 million funding round from South Korean investors Redbadge Pacific and SBI Investment Korea.

“Southeast Asia is still at the beginning of both the hotel franchising revolution and its travel demand surge. and we are delighted to join forces with Yanolja to fulfill this mission,” said Tanna. “Through its leadership in the Korean market, Yanolja has unparalleled hospitality knowledge and has built a highly refined and innovative business model that we are looking forward to bringing to the Southeast Asian market.”

The investment in Zen gives Yanolja, which is best known for providing discount hotel deals, an entry into Southeast Asia’s fast-growing travel market, which is increasingly popular with South Korean tourists. Yanolja also hopes to gain access to Southeast Asian travelers, who made up 16% of all foreign entrants into South Korea in June 2018.

With more than 120 franchise hotels and 41,000 rooms on its online platform, Yanolja is South Korea’s leading online hotel booking company. The company was founded in 2005 and has raised several rounds of PE funding from the likes of Partners Investment, SL Investment, and Skylake Investment.

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• Topics
• Southeast Asia
• Expansion
• Consumer
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• Singapore
• TMT