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Budget hotels marketplace Zo rooms raises around $15 mn from Tiger Global, Orios Venture

Zo Rooms,
launched by the founders of Zostel, has raised an undisclosed round of series A
funding led by hedge fund Tiger Global with participation from Orios Venture
Partners. The amount is close to $15 million, reports the Economic Times,
citing sources.

Zo Rooms,
launched by the founders of Zostel, has raised an undisclosed round of series A
funding led by hedge fund Tiger Global with participation from Orios Venture
Partners. The amount is close to $15 million, reports the Economic Times,
citing sources.

“We would
primarily be investing in capturing a strong leadership position in the
market,” Paavan Nanda, co-founder at Zo Rooms, told the Economic Times.
“Majority of the use of proceeds are going to be in building a strong
brand, marketing, bolstering technology and ground operations.”

In the last six months, Zo Rooms has expanded to
30 cities with more than 400 hotels. “We are adding five hotels everyday
and launching two new cities every week, and we would be having 2,000 hotels in
60 cities by December 2015,” Nanda was quoted in the report as saying.

Zo
Room competes with larger-funded players including Oyo Rooms, which is backed
by Sequoia Capital and Lightspeed Ventures, and is in late-stage talks to raise
$100 million from Japan’s Softbank. However, investors think that the market is
just heating up and a clear leadership position will be established only 12
months down the line. 

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