RedDoorz brings in US$28.2 million after becoming cash flow positive in Q4 2023
SINGAPORE-BASED RedDoorz has secured US$28.2 million from returning investors Asia Partners and Mirae Asset Venture Investment, among others, according to Alternatives.pe, which tracks regulatory filings in the city-state.
The hospitality firm did not confirm the raise in a comment, but founder and CEO Amit Saberwal told Tech in Asia that as a series C company, “our internal investors supported us through Covid till where we are today – achieving group cash flow positive”. The milestone, Saberwal shared in an e-mail, was attained at the group level in the fourth quarter of last year.
Without giving specific figures, Saberwal added that being cash flow positive props RedDoorz up for profitability and self-sufficiency in 2024.
“We have worked on all aspects of business to achieve this – continuous supply growth through our multi-brand portfolio, focusing on improving unit economics and OpEx (operating expenses) optimization,” said the CEO.
This follows the Asia Partners-backed firm breaking even in Indonesia and the Philippines – two markets that contribute 95 per cent to its business – in the fourth quarter of 2022.
However, at that time, the company also reduced its properties in Vietnam by 37 per cent due to the impact of the Covid-19 pandemic.
In February last year, Saberwal told Tech in Asia that he wanted to avoid overhiring, “which would inevitably lead to mass firing like the recent tech layoffs”. By April, however, the firm had laid off 90 employees in its non-core markets.
According to Tech in Asia data, RedDoorz has previously raised over US$134 million, with past investors including International Finance Corporation, Jungle Ventures, MNC Media, and 500 Global.
Besides operating hotels, the company also generates revenue by offering micro products such as early check-in or late check-out, paid loyalty programs, insurance, flexible cancellation policies, and breakfast.
RedDoorz, which plans to expand into Malaysia, follows a multibranding strategy. Its brands include Sans, Urban View, Sunnera, and Lavana. TECH IN ASIA
