Bengaluru-based budget hotel chain Treebo Hotels has raised $34 Mn (INR 220 Cr) in its Series C funding round. The investment was led by Hong Kong-based investment firms Ward Ferry Management and Karst Peak Capital. Existing investors, SAIF Partners, Matrix Partners India, and Bertelsmann India Investments also participated in the round.
Treebo Hotels will invest the fresh funds into enhancing customer experience, building a stronger brand, strengthening its technology team, and expanding its footprint in existing and new cities.
Founded in June 2015, Treebo Hotels is a technology-enabled budget hotel brand with close to 300 franchises offering 6000 rooms, operating exclusively under its brand across more than 50 cities. The company offers quality accommodation options to travelers in the INR 1,000-3,000 per night price range. It offers its guests value-for-money by providing branded toiletries, complimentary breakfast and free Wi-Fi.
After a successful stint in companies like McKinsey and Myntra, Sidharth Gupta, Rahul Chaudhary and Kadam Jeet Jain, decided to launch Treebo to provide budget travellers with the best value for money with Treebo Hotels. This was the time when OYO Rooms, the Gurugram-based budget hotel aggregator, raised a $100 Mn round and many me-too models had started spawning in the ecosystem. The idea is to work on a full inventory model with carefully selected, existing, stand-alone hotels and prescribes the quality standards to which hotel operators need to adhere and helps them achieve those standards through staff training, bulk contracts with vendors, and technology implementation. For instance, on the B2B side, technology has been utilised to combat the problem of failing WiFi. Also, to keep a quality check on hotels, Treebo has employed ‘Floating General Managers’.
The Treebo team registers some industry firsts too. This includes the launch of ‘Friends of Treebo’ – a crowd sourced mystery-audit programme to help get independent feedback on the quality of properties, in December 2015; Bumblebee – the first ever stand-alone tablet-based property management system to efficiently manage hotel operations and reduce one/sixth check-in/check-out time for the guests in June 2016; and Treebo Hangouts – to organise fun evening activities for the guests staying at Treebo properties.