Treebo Hotels raises USD 6 mn from existing investors

The investment will help the company strengthen its defences against the COVID-19 pandemic, which has had a severe impact on the economy, especially the travel sector," Treebo Hotels said in a statement. The company would also use the funds to continue building cutting-edge technology products for the business, it added.

Budget hospitality chain Treebo Hotels on Thursday said it has raised USD 6 million (around Rs 45 crore) in a new round of investment from its existing investors. "Matrix Partners India, SAIF Partners, Ward Ferry, and Bertelsmann India Investments participated in this round. The investment will help the company strengthen its defences against the COVID-19 pandemic, which has had a severe impact on the economy, especially the travel sector," Treebo Hotels said in a statement.

The company would also use the funds to continue building cutting-edge technology products for the business, it added. "Before the pandemic unfolded, Treebo had a strong growth trajectory and we were well on our way to hit EBITDA profitability within this calendar year," Treebo Hotels co-founder Sidharth Gupta said.

While COVID has delayed the company's breakeven timeline, it is confident about the long-term prospects of the business and once things get better, it will resume its march towards profitability, he added. "In the interim though, this investment from our existing investors will give us the much-needed staying power. It shows the faith that our investors have in the business," Gupta said. On the development, Managing Director at SAIF Partners Mayank Khanduja said: "When people start traveling again, they will look to stay with trusted brands rather than looking for the cheapest alternative or taking a chance with a mom-and-pop hotel. This is where Treebo's strength lies." In a similar vein, Bertelsmann India Investments MD Pankaj Makkar said: "As long term investors, we have always been amazed with the deep execution demonstrated by Treebo management before and during COVID times and have a strong view of the business in the future." Treebo Hotels has a portfolio of over 600 hotels in more than 100 cities, the statement said.