MUMBAI: Treebo Hotels, a budget hotel room-booking platform, has begun talks with venture capital funds to raise around $25 million (around Rs170 crore), two people aware of the development said.
Treebo raised $17 million in July in a round led by Bertelsmann India Investments (BII), the strategic investment arm of German media conglomerate Bertelsmann SE and Co. KGaA, reports Mint.
Existing investors Matrix Partners India and SAIF Partners also participated in the funding round.
In June 2015, Treebo raised $6 million from SAIF Partners and Matrix Partners India.
“They are back in the market to raise funds. They had initially planned to raise around $40 million in one go and had started conversations in early 2016,” one of the two persons cited above said on condition of anonymity because the talks are private.
“However, given the damp fund-raising environment last year, they had decided to raise around half of that amount and again hit the market at a later date.”
Treebo will use the funds for expansion of its hotel network and to pay for marketing, said the second person cited above, also requesting anonymity.