Budget hotels platform NIDA Rooms announced today that it has secured $5.6 million in a series A funding round led by private investment firm Shanda Group. Other Southeast Asian investors also participated in the round, the company said.
The latest financing round brings NIDA Room’s total investment to $11 million. With this, the company claims to be the best-capitalised business in its segment in the region.
It has planned to launch its services in Singapore soon.
Commenting on the development, Kaneswaran Avili, NIDA Rooms CEO and co-founder said: “We are pleased to have Shanda’s support given their track record of building strong digital businesses. Their expertise will help further our mission of becoming a regional leader in the economy accommodation industry.”
NIDA Rooms platform enables users to find affordable, quality accommodation in locations across Southeast Asia, while helping participating hotel partners to increase occupancy and revenues. Established in September 2015, NIDA Rooms has been disrupting the travel industry in countries like Indonesia, Thailand, Malaysia, and the Philippines. Its network comprised of 4,000 hotel partners.
“NIDA Rooms caught our attention as they have developed a business model that enables the company to quickly build a highly scalable platform with a strong brand, by effectively addressing the needs of travelers and local hotels in the fragmented, less digitalized yet large and rapidly growing economy hotel sector in South-East Asia,” said Shanda Group president Robert Chiu, in a press statement.