Singapore-headquartered budget hotel startup Reddoorz has raised $70 million in its Series C funding round as it looks to replicate the success of India’s OYO in Southeast Asia.
The latest capital raise for the four-year-old startup was led by Asia Partners, with participation from new investors Rakuten Capital, Mirae Asset-Naver Asia Growth Fund, and certain existing investors.
Monday's Series C funding comes just four months after its $45 millon Series B round in April, which was led by Qiming Venture Partners. Reddoorz has now raised $140 million since it was founded in 2015.
As well as being a hotel booking and management platform, Reddoorz has established itself as a franchise for two-star hotels in the region, which allows owners of these hotels to benefit from the economies of scale that big hotel operators enjoy.
This business model is similar to that of OYO, the rapidly growing Indian startup that has amassed more than 18,000 budget hotels.
Founded only six years ago, OYO is already the world's second-largest hotel group by number of rooms, as well as India's third-largest startup.
Reddoorz currently operates in more than 80 cities across Singapore, Indonesia, Vietnam and the Philippines and manages some 1,400 budget hotels.
Company founder Amit Saberwal said there is huge potential to grow because there are more than 125,000 two-star hotels in Southeast Asia, which implies that Reddoorz currently has only about 1% of the budget hotel market.