Budget accommodation startup Zo Rooms has raised series A round of funding led by hedge fund Tiger Global with participation from Orios Venture Partners. The deal amount is still undisclosed by the firm but according to ET report, it is said to be $15 million.
Commenting on this development, Paavan Nanda, Co-founder at Zo Rooms said, “We would primarily be investing in capturing a strong leadership position in the market. Majority of the use of proceeds are going to be in building a strong brand, marketing, bolstering technology and ground operations.”
The startup is currently operational in 30 cities in more than 400 hotels and aims to reach 2,000 hotels in 60 cities by December 2015. Founded in 2014 by Paavan Nanda, Dharamveer Chauhan, Tarun Tiwari,Akhil Malik, Abhishek Bhutra and Chetan Chauhan and Siddharth Janghu, the company claims to adding five hotels everyday and launching in two new cities every week. It competes with Sequoia and Lightspeed backed OYO Rooms, which is in late-stage talks to raise $100 million from Softbank.
Stayzilla is another player which also operating in similar space, raised a $20 million series B round of funding from Nexus Capital & existing investors Matrix Partners in February this year. FabHotels, formerly Casa2Inns, raised $5 million from Accel Partners and Kalaari Capital in May.