Room rental service Zo Rooms has raised $30 million from existing investors Tiger Global Management and Orios Venture Partners, reports TheTradeBoss. The startup will use the funds for expanding to other cities. Note that just last month Zo Rooms had raised an undisclosed amount from the same investors, an amount to be pegged at $5 million by the current TheTradeboss report. The company had said then that it would use the funds for marketing, brand building and improving its technology.
Interestingly, the Zo Rooms funding comes within a week of competitor OYO Rooms raising $100 million in funding led by SoftBank Group and with participation from existing investors Greenoaks Capital, Sequoia Capital and Lightspeed India. OYO rooms had also raised $20 million from Greenoaks Capital and other existing investors in March.
As of now, Zo Rooms offers room rentals in 25 cities, including Delhi, Chennai, Mumbai, Pune, Mysore, Varanasi, Hyderabad and Bangalore. To book a room, users need to select the city they want the room in, the check in and check out dates, number of rooms, and number of people in the room. If not booking online, users are provided with a number to call the company and rent the room. Zo Rooms claims that it will have 2000 hotels in 60 cities by the end of this year.
In February, Chennai-based Insara Technologies, which operates hotel booking site Stayzilla, raised $20 million in a Series B round of funding led by Nexus Ventures with participation from existing investor Matrix Partners India. In 2013, Stayzilla had raised an undisclosed amount of funding from Matrix Partners, in return of a minority stake in the company. In 2012, the company had raised $500,000 from Ravi Krishnappa, one of the founding partners of the angel fund VertExperts, who led the investment as part of the Indian Angel Network (IAN).
Other than this, more established online travel agents such as MakeMyTrip, Cleartrip and Yatra etc., have hotel booking services that have been growing at an impressive rate. At MakeMyTrip, hotels and packaging business contributed for 44.2% of the company’s net revenues for the quarter ended December, and the segment’s revenues grew by 43.5% to $15.8 million for the quarter, from $10.99 million in the same quarter last year. Meanwhile Cleartrip, reported a 98% rise in hotel bookings in the third quarter. Cleartrip, which is an unlisted company, did not give the increase in searches and bookings in terms of absolute terms, but said that it saw an average of 2,500 room-nights booked per day. Over a 90 day period that translates to about 2,25,000 hotel bookings.
Related Tags:Room rental service, Zo Rooms, Tiger Global, Orios Venture Partners, Zostel, Budget Hotel Accomodation