Southeast Asia Startup RedDoorz Raises US$115m
- RedDoorz announced a fresh investment of US$70M. The funding comes in quick succession after its US$45M round due to high investor demand.
- This new investment is the first close of a larger Series C round and is led by Asia Partners with participation from new investors Rakuten Capital and Mirae Asset-Naver Asia Growth Fund.
- The new capital will be used for market and product line expansions, and to build a second tech hub in Vietnam amongst other growth initiatives.
Singapore – RedDoorz, Southeast Asia’s largest and fastest-growing hotel management and booking platform, announced today it raised US$70 million as first close of a larger Series C funding.
Leading the round is Asia Partners, a Singapore-based growth equity firm founded by senior executives with an exceptional track record in scaling multi-billion tech companies (Sea, Naspers, Bukalapak) globally and across the region. RedDoorz is the first portfolio company of Asia Partners, which focuses on growth-stage investments in technology and technology-enabled companies in Southeast Asia.
Two other leading funds, Rakuten Capital and Mirae Asset-Naver Asia Growth Fund, joined the round. Existing investors Qiming Venture Partners and International Finance Corporation (IFC) also reiterated their support by participating in the round.
The startup’s Series C investment follows shortly after RedDoorz announced its Series B funding of US$45 million in April 2019. The new funding brings the total amount of funds raised by the company to approximately US$140 million since its launch in 2015. RedDoorz is now among the best-funded startups in Singapore and, specifically, is the best funded company in its category of online affordable accommodations across Southeast Asia.
Amit Saberwal, Founder and CEO of RedDoorz said, “We are thrilled to welcome a new group of seasoned investors joining us in our mission to build the leading tech-enabled affordable travel brand in Southeast Asia. This new round is a testament to our strong business growth and market leadership position we were able to build during the last few years. RedDoorz operates in some of the most dynamic markets in the world and we see tremendous opportunities to continue growing our platform and expanding into new markets.”
“We believe we are on the right track to create the next tech unicorn in Southeast Asia and with the backing of our new investors, who bring deep expertise building large successful tech and digital businesses in our region, we are well positioned to fully execute on our strategy and mission,” he added.
RedDoorz will use the new funds to launch in new markets and scale technology, customer experience projects, people and marketing investments to further strengthen its leadership position in the region. A significant portion of the latest proceeds will be used to build a second engineering hub in Vietnam which will complement the current regional tech hub based out of India.
The company also plans to ramp up its hotel staff and quality training programmes across all properties in Singapore, Indonesia, Vietnam and the Philippines as it helps employ approximately 10,000 people across the region through its hotel partners.
The lead investor for this round, Asia Partners, was launched in 2019 by a team of senior executives who were involved in two of emerging Asia’s most notable exits: the largest IPO (initial public offering) for a Southeast Asia startup (Sea Ltd.) and the largest tech cash exit in Asia’s history (Flipkart’s sale to Walmart).
Oliver M. Rippel and Nicholas A. Nash, Co-Founders and Partners of Asia Partners said, “Our mission is to help build and mentor Southeast Asia’s next generation of tech unicorns. Our team has a unique combination of investing and operating skills to help companies such as RedDoorz become true market leaders. We have every confidence in the team’s ability to capture the enormous opportunity which exists in the affordable travel segment. This investment affirms our belief in RedDoorz’s vision and plan for the region.”
Rakuten Capital, the corporate venture arm of Japanese Internet services giant Rakuten Group, has invested in regional leading companies such as Gojek, Carousell and Shopback. The Mirae Asset-Naver Asia Growth Fund, a joint venture between Seoul-based Mirae Financial Group and Internet company Naver Corporation, counts HappyFresh and BigBasket as portfolio companies and also recently participated in Grab’s US$1 billion Series H round.
About Asia Partners
Asia Partners is a growth equity firm focusing on investments in technology and technology-
enabled companies that are transforming Southeast Asia’s economy.
The co-founding partners were involved in two of Emerging Asia’s most notable exits – the
largest internet IPO from Southeast Asia (Sea), and the largest technology cash exit in Asia’s history (Flipkart). The five co-founders of Asia Partners have invested in or helped to lead 24 companies in Southeast Asia over the past decade, and also include Thai, Indonesian, and Vietnamese nationals, authentically helping our companies expand across the region.
About Rakuten Capital
Rakuten Capital is a corporate venture capital group that provides funding, sector experience and operational support to its portfolio companies across the world. Rakuten Capital is part of the Rakuten Group, one of the world’s leading internet service companies. Rakuten has built and invested in innovative internet businesses in e-commerce, financial services, digital content and advertising since 1997. The company is headquartered in Tokyo and is publicly traded on the Tokyo Stock Exchange. For more information visit: https://capital.rakuten.com
About Mirae Asset-Naver Asia Growth Fund
Mirae Asset – Naver Asia Growth Fund (“AGF”) is a US$ 1bn. sized joint fund between Mirae Asset Financial Group and Naver Corporation. Mirae Asset is a leading financial group in Korea with wide coverage throughout the globe while Naver is the largest internet company in Korea. Naver is also the controlling shareholder of LINE, the leading messenger servicer in Japan and SEA. Mirae Asset and Naver had established AGF last year to support the SEA start-ups in the growth stage.