By Arjay L. Balinbin
SINGAPORE-BASED hotel management and booking platform RedDoorz is eyeing an initial public offering (IPO) in the country by 2022.
“I think, overall, the business goal of RedDoorz is to conduct an IPO… By 2022 or 2023, we should be on our way to creating our business which is publicly listed. That is the general vision,” RedDoorz founder and chief executive officer Amit Saberwal told BusinessWorld in an interview in Makati City on Wednesday.
He added that the company targets to earn $500 million by 2020.
“I think for that to happen, by 2020, we should have a thousand of properties in the Philippines. What we are doing is that we are just trying to do it in a better, smarter, and more efficient way. I think we will get there by just doing that,” he said.
By December, he said RedDoorz will be earning approximately $200 million.
“One million occupied room nights in December which will translate into $200 million in sales,” he said, adding that this is “four times” higher than the company’s earnings last year. Room nights are the number of rooms occupied at any given time.
RedDoorz announced last August that it raised $70 million at the first close of a larger Series C funding.
Singapore-based growth equity firm Asia Partners, Rakuten Capital, and Mirae Asset-Naver Asia Growth Fund, joined the funding round. Existing investors Qiming Venture Partners and International Finance Corporation also participated in the round.
The Series C investment brings to $140 million the total of funds raised by RedDoorz since it launched in 2015.
The company has said it will use the fresh funds to enter new markets, launch customer experience projects, and invest in people and marketing. A portion of the proceeds would be used to build a second engineering hub in Vietnam.
According to the founder, the company is expanding to major cities and tourist destinations in the Philippines this year.
RedDoorz reported last September that it had 200 hotels in more than 20 cities in the Philippines. It said it would open new properties in tourist destinations such as Boracay, Bohol, Antique, Capiz, Dumaguete, Tacloban, and Negros Occidental. Mindanao properties would follow in the fourth quarter.
The properties offer standardized services, including Wi-Fi connectivity, clean rooms, and essential amenities. Customers can upgrade to RedDoorz Plus and RedDoorz Premium for additional services.
The company partners with local hotels and private accommodations. They standardize their rooms and amenities, then connect them to customers through the RedDoorz mobile site or app.