Zo Rooms has raised a total of $30 million (Rs 192 crore) from their existing investors Tiger global and Orios Venture Partners, this move comes after a month of raising $5 million from Tiger and Orios.
Zo Rooms, Delhi-based startup, owned and run by Zostel hospitality, provides budget accommodation targeted towards business-traveler and leisurely stays. Zo Rooms claims to have spread across 35 cities in the country with 500 hotels listed on its website.
Zo Rooms plans to put the raised capital into expanding its presence across the country said two people with direct knowledge of the developments.
Zo Rooms, founded in 2013 by a group of IIT and IIM graduates, also runs a chain of backpacker hostels under the brand–Zostel. The company plans to expand Zostel and take the number of hostels in the chain to over 40 in the next 3 months.
The company is looking forward to raise as much as $100 million, for which it has already initiated talk with some of the globally known private equity financing firms. An official from the company directly familiar with the developments added that Fidelity Investments is one of the investors, Zo Rooms is in talk with.
OYO Rooms, biggest rival, led by Ritesh Agarwal, had recently raised $100 million from Japanese conglomerate Softbank.