Treebo Hotels secures Matrix Partners and SAIF Partners for $6 million. The company is a tech enabled chain of affordable and reliable hotels. Treebo is a chain of affordable, comfortable and reliable hotels providing genuine value for money to travellers.
The company partners with small standalone hotels and assist the hotel owners to improve their service quality standards and market themselves effectively. Treebo piloted their services in Bangalore with carefully curating 200 rooms in a short of span of 2 months.
The company was founded by Sidharth Gupta and Rahul Chaudhary and Kadam Jeet Jain. Sidharth and Rahul worked at Flipkart Myntra as Vice Presidents. They were leading several key strategic initiatives for Flipkart. Sidharth and Rahul were colleagues from long time had worked in McKinsey & Company before their stint in Flipkart Myntra.
The other co founder of Treebo Kadam Jeet Jain had worked in MyGola. MyGola was taken over by MakeMyTrip recently. Kadam is an ex alumni of Indian Institute of Technology, Roorkee. He is experienced entrepreneur with 9 years of experience in the field.
Treebo‘s co founder Sidharth Gupta says “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.”
Mayank Khanduja, Vice President, SAIF Partners says “The budget hotel segment in India will continue to experience strong growth driven by growth in both business and leisure travel. The model adopted by Treebo has already seen tremendous success in China, which until a decade back was an unorganized market similar to what we see in India today. We are confident that Treebo can emulate that success in India and unlock immense value by solving a genuine problem faced by travellers today.”
The funding comes in the wake of several startups raising funding in millions. Oyo raised $25 million from Sequoia Capital and others. Fabhotels secured $5 million from Accel Partners and Kalaari. ZenRoom was funded by $1 million. Treebo may expect competition from Chennai based startup Stayzilla.com which has been recently funded too for $20 million. Stayzilla is considered to be fastest growing player among the crowd.