With this round, the total equity funding raised by the firm will touch $8 million.
“This funding round is now an important milestone to consolidate our early leadership and launch more features to modernise temporary budget accommodation in South-East Asia,” says Kiren Tanna, co-founder and global managing director of ZEN Rooms, in a statement.
The company, which started its operations in Indonesia, has now moved to the Philippines, Malaysia, Singapore, Thailand, Hong Kong, Sri Lanka, Brazil, all these having one thing in common-strong local and foreign tourism.
The company has taken more than 900 hotels under the ZEN Rooms brand in the last two years, with more than 500 from Indonesia. Vietnam, Australia and New Zealand are some countries that the company may look at expanding in the future, says Nikita Semenov, the co-founder of ZEN Rooms, who is also heading the Indonesian operations in an interaction with DealstreetAsia.
While Bali is one of its biggest operation in Indonesia with around 2,500 rooms managed on the island, followed by Jakarta and Yogyakarta, the company is now planning to grow in five other cities like Manado, Medan, Semarang, Solo and Balikpapan.
In the last two years, the budget hotel battle has started heating up in South East Asia, and one of the later entrants that have set shop in this fragmented space is Nida Rooms, which raised over $10 million, including a recent $5.6 million series A. Other companies in the similar space that have raised venture capital include Redoorz, and Tinggal.