After OYO, ZO Rooms raises fresh funding of Rs 192 crore from Tiger Global, Orios Venture
The New Delhi-based startup will use this latest round of financing, which closed last week, to expand its presence across the country said two people with direct knowledge of the developments.
Budget accommodation aggregator Zo Rooms has raised fresh funding of Rs 192 crore ($30 million) from existing investors, Tiger Global Management and Orios Venture Partners, weeks after rival OYO Rooms bagged $100 million (Rs 641 crore) in fresh financing from Japan's SoftBank.
The New Delhi-based startup will use this latest round of financing, which closed last week, to expand its presence across the country said two people with direct knowledge of the developments. In July 2015 itself, ZO Rooms had raised $5 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.
Zo Rooms, which started in 2015, is currently battling it out with OYO Rooms to grab pole position in the still-nascent online-led, budget accommodation marketplace sector,