RedDoorz Eyes IPO to Build Southeast Asia's Largest Hospitality Firm

13.08.2024 - 22:05 / skift.com / Southeast Asia / Peden Doma Bhutia

Southeast Asian online hotel management and booking platform RedDoorz has its sights set on IPO – but it has a lot of steps to clear first.  

While the Indian IPO market is currently thriving, the global public markets are less favorable, RedDoorz founder and CEO Amit Saberwal told Skift. “We plan to build and grow the business before setting a concrete timeline, but I hope we can achieve this within the next three years,” he said.

The company aims for at least $65 to $70 million in revenue to be in a strong position for an IPO.

While the company did not disclose its exact financials, RedDoorz was ranked 96th in the Straits Times and Statista’s 2024 list of Singapore’s top 100 fastest-growing companies, with 2022 revenues estimated at SGD 28.3 million ($20.9 million).

RedDoorz secured $70 million in a Series C funding round in August 2019, following a $45 million Series B round the previous month, according to the factsheet. In April this year, it raised an additional $28.2 million from some of its returning investors, according to media reports.

Investors include Rakuten Capital, DeepSky Capital, Hendale Capital, Qiming Venture Partners, Asia Partners, MNC Group, Innoven Capital, Jungle Ventures, and others.

Acquisitions play an important role in RedDoorz’s growth strategy. “We can either build our way into revenue or buy our way into it,” Saberwal explained.

RedDoorz focuses on opportunities within the hospitality space in Southeast Asia, leveraging its technology to help asset owners increase revenue. Its core markets include Indonesia and the Philippines, with potential expansion into Thailand.

Given the subdued capital markets, Saberwal said he would avoid large, cash-burning acquisitions. Instead, the company seeks out businesses that are either breaking even or making money, and that align with its vision. “We are building the largest hospitality company in Southeast Asia. A public event is a good option to raise money, and founder alignment is essential,” the CEO noted.

RedDoorz emphasizes sustainable growth and profitability. “We’ve fought hard to reach where we are and won’t revert to a cash-burning setup,” Saberwal asserted. The company seeks acquisitions that are break-even or near break-even, with evolved business models and some scale. “We will consider small profitable companies only if they offer something unique and valuable.”

The company has shown significant progress in its financial performance. “The last quarter of last year was our first fully cash flow-positive quarter. This year, we plan to be fully cash flow positive as a company for the full year unless a strategic decision, like an acquisition, leads to some cash burning,” he said.

According to Saberwal, RedDoorz prefers to