Budget accommodation aggregator Zo Rooms has raised $30 million from existing investors, Tiger Global Management and Orios Venture Partners. The news has arrived just weeks after rival OYO Rooms raised $100 million of fresh capital from Japan’s SoftBank.
Notably, in July 2015 itself, ZO Rooms had raised $15 million from the same investors.
No statement has been released officially by the company yet. However, the raised fund will be employed towards expanding its presence across the country. “They (Zo Rooms) are addressing a big gap in the market, and have managed to scale very rapidly. But there is competition, and every company needs capital to counter that, while continuing to grow at a certain pace,” confirmed one of the sources associated directly with the matter.
As per sources, “Fidelity Investments is one of the investors that Zo Rooms is in talks with for a further round”, reports ET.
The online budget hotels marketplace has its presence in 35 cities across the country, and has about 500 hotels listed on its marketplace, which cater largely to leisure and business traveler segment. It is run by its parent company Zostel Hospitality which was founded in 2013.
“We lay strong emphasis on building a great company culture as we scale. We have invested a lot of time and effort in building robust processes that shall help us deliver a great experience to each and every guest that stays with us,” maintained Zo Rooms Co-founder Nanda.