Bengaluru-based Treebo Hotels witnessed a 2.4X growth in its revenue in FY23 with revenue from operations crossing Rs 88 crore. It previous recorded Rs 39.4 crore in revenue in FY22 with over 70% of the total revenue coming in from operations.
The hospitality focused company was founded in 2015 by trio Sidharth Gupta, Kadam Jeet Jain, and Rahul Chaudhary. It is a budget hotel chain that work with independent hotel owners to standardize properties and improve customer experience. It offers central reservation system, property management system, revenue manager, and channel manager, among others. It currently has over 600 hotels across more than 100 cities.
The company’s expenses grew over 60% to Rs 97.8 crore. Over 30% of the total expenses were spent on employee benefits and over Rs 25 crore was spent on commissions. This was a 39% increase in amount spent on employee benefits and a 2.9X rise in amount spent on commissions as compared to the previous fiscal year.
Although the expenses of the company grew a significant amount, it was an equal drop it its losses. Treebo Hotels’s losses for FY23 amounted to Rs 3.6 crore, an over 83% drop as compared to FY22’s Rs 21.5 crore. Its EBITDA margins and ROCE stood at -3.11% and -8.28% respectively.
It has raised a total of Rs 566.86 crore over 9 funding rounds. The latest round, an extended Series D, was held on April 2022and raised Rs 10.76 lakhs led by Sakshi Gudwani. The company previously raised Rs 118.04 crore in 2021 with Accor as its lead investor.
Post the round, investors Elevation Capital and Matrix Partners became the largest shareholders holding an equal share of over 17% each.
Treebo Hotels is up against the likes of Oyo, Cleartrip, Ixigo, and MakeMyTrip.
