Budget hotel chain Treebo has recorded Rs 47 crore in revenue while its net losses reported as Rs 115 crore in the financial year ending on March 31, 2018.
The Bengaluru-based startup has witnessed 130 per cent jump in revenue and a 56 per cent spike in losses as compared to the previous fiscal.
The figure for revenue and net losses stood at Rs 20.6 crore and Rs 73.5 crore respectively in FY17. Treebo’s total expenses for FY18 was reported as Rs 162 crores, reveals data platform Tofler.
Last year, the company had raised $34 million in Series C funding round from Ward Ferry Management, Karst Peak Capital and existing investors.
The company claims to book about 2,40,000 rooms every month and generates about Rs 48 crore in revenue on a monthly basis. Further, it has added 170 properties this year and aims to add 500 additional properties to its portfolio by early 2019.
To drive scale, the company started roping in unorganised stakeholders such as auto-rickshaw and cab drivers, individual agents and small shopkeepers via an app – Hero. The app allows those working agents for Treebo to set commission on top of actual price point.
Budget hotel segment has been witnessing intense competition with Oyo leading the pack. Oyo had recently raised $1 billion from SoftBank Vision Fund, Sequoia Capital and Lightspeed Venture Partners. Following the massive financing of Oyo, rivals Treebo and Fabhotels also began merger talks.
Unlike several other segments in the online space, hotels brands would take many years from now to evolve as winners. It’s a long haul game. While Oyo has an access to unlimited capital and hence in domineering position, it would be interesting to watch how Treebo creates space for itself.