Zo Rooms is a New Delhi based startup founded by a group of IIT and IIM alumni in 2015 with an aim of exploring the scope of traveler segment and doing business with it. It is an online marketplace for booking budget hotels over various parts of the country. Currently it extends its services in 35 cities across the country and as about 500 hotels listed in its marketplace. It functions as a subsidiary arm of Zostel Hospitality and is competing with OYO Rooms to establish a key position in the online led budget accommodation marketplace sector which is still nascent in the country. Zo Rooms operates by aggregating with hotels at different places and offering rooms to its guests with an affordable rate typically at about Rs 1,000 per night. By this it ensures that the guests using their brand have quality and standardized experience.
Zo Rooms are addressing a big gap in the market and the company needs additional capital to manage its operations. So they went for a fresh funding and raised Rs 192 crore from Tiger Global Management and Orios Venture Partners who are their existing investor’s .They have also initiated talks with a number of global private equity firms, sovereign and many hedge funding firms to raise their equity finance capital to about $100 million.
Tiger Global Management is one among te main investing firms that as invested in Indian startups tis year .It is a New York based investment firm and as invested more than $600 million (about Rs 3,845 crore) in the country so far this year. Orios Venture Partners is an Indian venture capital firm that mainly provides early stage venture fund and invests primarily in software and technology enabled start-ups
Zo Rooms technology driven and asset light business models and the effort taken by them to bridge the gap in terms of quality and quantity has made the firm best for risk capital investors who wish to invest in hospitality sector. Mr.Nanda, Co-founder Zo Rooms relies on the fact that their company needs investment for building a robust process that help them in delivering a great experience to each guest for building a great company culture.