RedDoorz operates more than 1,500 budget hotels in more than 120 cities across Indonesia, Singapore, the Philippines and Vietnam. (Photo courtesy of RedDoorz)
RedDoorz Wants to Be a Unicorn Company by 2020
BY :ABDUL MUSLIM
OCTOBER 23, 2019
Jakarta. RedDoorz, one of the largest hotel booking and management platforms in Southeast Asia, has set a target to become a unicorn company – any tech-based startup with a minimum valuation of $1 billion – by the end of 2020.
RedDoorz currently operates more than 1,500 hotel properties in more than 120 cities across Indonesia, Singapore, the Philippines and Vietnam.
In addition to expanding its network in Indonesia, RedDoorz will continue to grow its business in Southeast Asia, with a plan to enter Thailand in the first quarter of 2020.
At the moment, around 75 percent of the properties in the hotel chain are located in Indonesia.
"We're still talking to investors to continue our Series C funding. There will be another funding round going forward. By our own estimates, we can become a unicorn by the end of 2020," Mohit Gandas, the president director of RedDoorz Indonesia, said on Tuesday.
RedDoorz has achieved many important milestones this year, notably the first funding of $70 million as part of the aforementioned Series C.
The company has received around $140 million in total funding since it was founded in 2015.
According to Gandas, RedDoorz expects to list on the stock exchange in 2022 or 2023 in order to continue its business expansion.
The company has not decided which country in Southeast Asia will host its IPO.
Meanwhile, RedDoorz will continue expanding its hotel chain in Indonesia to reach 1,500 properties by the end of this year. At the moment it already has 1,200 properties.
RedDoorz has seen its business growing rapidly Indonesia, with the number of its hotels multiplying fivefold so far this year.
The company expects to have 4,500-5,000 hotels in five Asean countries by the end of 2020, including in Thailand.
RedDoorz's vision of providing quality and standardized accommodation on every street corner in major cities and tourist attractions has become a key driver in setting standards for affordable hotels in Indonesia for domestic and international tourists.
"RedDoorz will continue to expand and improve service for clients every day by opening new properties in existing cities as well as new cities, without reducing comfort, affordability or cleanliness," Gandas said.
In Indonesia, budget hotels play an important role in the rapid expansion of the country's travel and tourism industry in recent years.
The industry accounts for about 6 percent of Indonesia's gross domestic product or the equivalent of $62.6 billion.
In addition, the travel and tourism sector provides nearly 13 million jobs, contributing to more than 10 percent of employment in Indonesia.