Former Myntra senior executives Sidharth Gupta and Rahul Chaudhary, along with Kadam Jeet Jain, who founded the branded budget hotel chain Treebo earlier this year, have raised $6 million, or Rs 38 crore, in their first round of funding co-led by Matrix Partners India and SAIF Partners.
Treebo will use these funds for expanding its network of hotels, developing state-of-the-art technology and hiring top talent.
This investment comes close on the heels of the formal launch of Treebo Hotels, formerly known as Zipotel, making it one of the fastest series A fund-raises by a tech startup since inception.
Treebo is currently active only in Bangalore and claims an inventory of over 200 rooms so far in St. Marks Road, Koramangala and M.G. Road, they plan to scale up to to 5,000 rooms across 20 cities, Currently rooms at Treebo start at Rs 1,099 and offers customers the usual fare of free WiFi, clean rooms and bedding, air conditioning, television and breakfast.
“The biggest challenge in the highly fragmented budget hotel space is the lack of standardization. With Treebo, customers can book with confidence knowing that all their properties will have a safe, comfortable and standardized service offering at an affordable price,” said Tarun Davda, director, Matrix India.
“Currently there are upwards of 10 lakh budget hotel rooms in India. But 95% of them are in the unorganized segment. Therefore, despite the availability of online booking options and third party reviews, the lack of quality assurance continues to be an unsolved problem for the traveller in this segment. This is the problem we are focused on solving. Our hotels come with an unprecedented ‘100% Quality Guarantee’. We believe there is a huge untapped opportunity in this space and ability to deliver great customer experience will be the key success factor.” said Sidharth Gupta, co-founder of Treebo
Rahul Chaudhary, co-founder of Treebo added, “Our unique, asset-light business model and strong team has allowed us to build an inventory of over 200 carefully curated rooms in Bangalore in a short span of two months. Over the course of the year we will partner with high-quality budget hotels to scale to a network of 5,000 rooms across 20 cities. SAIF and Matrix are two of the most respected names in the venture capital world and have mentored several successful startups in the country. They share our passion and commitment towards offering a quality experience to customers. We are delighted to have them both as partners in our growth.”