RedDoorz, a Southeast Asian online hotel management and booking platform, is considering going public with an IPO in the near future. However, the company is taking a cautious approach due to the current state of global public markets. RedDoorz founder and CEO Amit Saberwal stated that they are focusing on building and growing the business before setting a concrete timeline for the IPO, with hopes of achieving this goal within the next three years. The company aims to reach a revenue of at least $65 to $70 million to ensure a strong position for the IPO.
RedDoorz has shown significant progress in its financial performance, ranking 96th in Singapore’s top 100 fastest-growing companies with estimated revenues of SGD 28.3 million in 2022. The company has secured substantial funding through various rounds, including a $70 million Series C funding round and an additional $28.2 million raised this year. RedDoorz’s growth strategy includes acquisitions in the hospitality space in Southeast Asia, with a focus on markets like Indonesia and the Philippines. The company aims to leverage its technology to help asset owners increase revenue.
Saberwal emphasized the importance of sustainable growth and profitability for RedDoorz, stating that they are focused on acquiring businesses that are break-even or near break-even. The company is cautious of large, cash-burning acquisitions and seeks out opportunities that align with its vision of building the largest hospitality company in Southeast Asia. RedDoorz prefers to enter new markets through partnerships or acquisitions rather than starting from scratch, aligning with the risk appetite of the company and its investors.
While RedDoorz has ceased operating hotels in Singapore due to Covid-19, they view Thailand as a crucial market for expansion. Saberwal expressed the company’s interest in establishing a presence in Thailand through a partnership or acquisition, although specific plans have not yet advanced. RedDoorz focuses on the lower end of the market, primarily catering to domestic travel, and expects strong growth in the coming years despite the current economic challenges.
Although Saberwal has experience in the Indian market from his previous role at MakeMyTrip, RedDoorz is currently focused on its existing markets. However, the company may consider entering the Indian market if it provides a favorable exit path for the IPO. Saberwal highlighted the importance of founder alignment for a successful IPO, emphasizing the need for strategic decisions that support the company’s growth and profitability. With a measured approach to its IPO plans, RedDoorz is poised for sustainable growth and continued success in the Southeast Asian hospitality industry.
