The Indian Wire » Startups » Treebo doubles revenue to ₹47.4 crore, while loss widened to ₹115 crore
Startups

Treebo doubles revenue to ₹47.4 crore, while loss widened to ₹115 crore

Bengaluru-based hotel aggregator Treebo, owned and operated by Ruptub Solutions Private Limited, has posted a revenue of ₹47.4 crore in FY18, more than doubling from ₹20.56 crore in FY17, according to filings accessed by business intelligence firm Tofler.

The startups operating revenue was pegged at ₹41.4 crore in FY18, rising from ₹17.95 crore in the previous fiscal.

While Treebo witnessed some growth in the revenues, it came at a cost of its widening net loss, which stood at ₹114.9 crore in the current fiscal, up by 56% from ₹73.5 crore in FY17.

Losses can be attributed to the growing total expenses of the startup that stood at ₹162.37 crore in FY18, up from ₹94.04 crore in FY17. Also, employee benefit expenses accounted for about 41% of the total expenses at ₹66.83 crore.

Treebo Hotels was founded by former MakeMyTrip executive Kadam Jeet Jain, former McKinsey executive Rahul Chaudhary, and former Myntra executive Sidharth Gupta in June 2015. It has a wide variety of rooms providing a best-in-class service to its customers. It has about 10,000 rooms in nearly 400 hotels spread across over 85 cities operating under its brand.

In July 2018, Treebo laid off 10% of its 800 strong workforce, as the startup focuses on technology and innovations to reduce costs and inefficiencies in the process.

Earlier in August 2017, Treebo Hotels raised ₹226 crore in a series C funding round from Hong Kong-based hedge funds Ward Ferry Management and Karst Peak Capital. Existing investors that participated in the round included Bertelsmann India, SAIF Partners and Matrix Partners India.

In the hotel business, Treebo competes with the market leader and unicorn OYO, along with other players like FabHotels.

Last month, OYO raised $1 billion from Softbank, to fuel its global expansion plans.

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