On Thursday, the mid-scale hotel startup, Treebo hotels (1), stated that it had secured 6 million USD in a new funding round from its existing investors. It includes Matrix Partners India, Bertelsmann India Investments, SAIF Partners, and Ward Ferry.
With the latest tranche, the Bengaluru-based startup is aiming to strengthen its defenses against the coronavirus pandemic. Notably, COVID-19 has severely impacted the travel sector across the globe.
According to the company’s statement, it would utilize the fresh investments to keep building new tech products for its business. The Co-founder of Treebo Hotels, Sidharth Gupta, stated that it is essential for any travel and hospitality firm to survive at the time of a crisis.
After coming out from it, the other side holds benefits of the spike, bound to happen. He added a significant surge during the long weekend, which will increase after the vaccine announcements or when the number of cases will decline.
Treebo Hotels Working Towards Revenue Growth Amid COVID-19 Pandemic
Sidharth Gupta further stated that the team is already working on a lean cost structure. They have reduced their cost to head towards the right direction for revenue growth and surviving the COVID-19 hit. The teams’ previous work on reducing cash burns works significantly to the advantage for Treebo Hotels.
Notably, the hotel based startup has raised recent funds after three years. They will utilize it to build a SaaS product, Hotel SuperHero, a hotel management software. Treebo Hotels is selling it to independent hotels. While commenting on the development, Sidharth stated that the team would also look at the organized hotel chains. They will also utilize the new fundings to hire more talent for its tech team.
While commenting on the latest development, Tarun Davda, the Managing Director of Matrix India, stated that the last few months have been difficult for many companies. However, Treebo Hotels is offering world-class tech solutions to its partner hotels to compete in a post-COVID world.