Treebo Hotels recently announced that it has raised USD 6 Million (INR 45 cr) in a new round of investment. This investment has been raised from its existing investors – Matrix Partners India, SAIF Partners, Ward Ferry, and Bertelsmann India Investments.
This investment will help strengthen Treebo’s defenses against the pandemic
According to Treebo, the company also aims to use this money to continue building cutting-edge technology products for its business.
It is is one of the very few companies in the travel sector that has been able to attract investment despite the ongoing pandemic.
Commenting on the investment, Sidharth Gupta, Co-founder, Treebo said, “Before the pandemic unfolded, Treebo had a strong growth trajectory and we were well on our way to hit EBITDA profitability within this calendar year. Our EBITDA loss in February, for example, was under INR 10 lakh – an improvement of 95 percent on a year-on-year basis. While COVID has delayed our breakeven timeline, we are confident about the long-term prospects of the business.”
He added, “Once things get better, I am confident we will resume our march towards profitability. In the interim though, this investment from our existing investors will give us the much-needed staying power. It shows the faith that our investors have in the business.”
In the 12 months before COVID-19, Treebo had cut down its losses to a huge extent
This means that the company is better prepared to deal with the financial pressure imposed by the pandemic compared to some of the other travel companies. Apart from this, Treebo has been working on strategies that will build the business sustainably.
Mayank Khanduja, Managing Director at SAIF Partners is one of Treebo’s investors. He said, “While it’s true that the travel sector is severely impacted by COVID, we believe this impact is temporary. When people start travelling again, they will look to stay with trusted brands rather than looking for the cheapest alternative. This is where Treebo’s strength lies. They have built a loved brand, which will likely see a spike in customer uptake and revenue once the pandemic recedes.”
“The last few months have been difficult for many companies. However, it has forced everyone to focus on what truly matters. For Treebo that is providing world-class technology solutions to its hotel partners. This will enable them to compete in a post-COVID world”, commented Tarun Davda, Managing Director, Matrix India.
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