Global Rooms Limited, the owner and operator of the NIDA Rooms hotel reservation system, today secured an equity investment of US$ 4.2 million. The financing was led by two leading Asian venture capital firms, Convergence Ventures (www.convergencevc.com) and CyberAgent Ventures (www.cyberagentventures.com). This was the Company’s second institutional capital raise since its inception in second half of 2015; Emergebridge (www.emergebridge.com), an independent specialist advisory and investment firm bridging emerging and western markets acted as the Company’s advisor. NIDA Rooms is the first and largest "Virtual Hotel Operator" (VHO) in Southeast Asia.
NIDA Rooms will utilise the funds to further expand its business in Indonesia as well as to increase its market share in the Southeast Asia region, said Chief Executive Officer (CEO) and Co-Founder of NIDA Rooms, Kaneswaran Avili. Avili was speaking at a press conference after signing an agreement with Convergence Ventures, which was represented by its Managing Partner, Adrian M. Li and CyberAgent Ventures, which was represented by its Vice President, Steven Vanada.
Avili stressed that NIDA Rooms’ efforts to solve the hotel industry’s low occupancy and low Average Room Rates (ARR) problems by offering hoteliers a unique distribution channel for their unsold inventory whilst simultaneously giving the consumer a smart-phone app that allows them to choose accommodation at the Right Location, for the Right Price with the Right Quality. To date, NIDA Rooms has completed the first phase of its start-up by partnering and branding over 3,500 hotels in four key countries and integrating its marketing activities with reputable Online Travel Agents (OTAs) worldwide.
“The signing of this agreement is an important milestone for the company’s future development plan, as NIDA Rooms is now embarking on the second phase in fulfilling its promises to our hotel partners and consumers by generating bookings and revenues. We aim to increase the hotel partnership to 7,500 by year end while focusing on enhancing the ‘value added experience’ for our consumers,” added Avili.
Meanwhile, Li said, "The NIDA Rooms opportunity fit our investment thesis well. They have a strong and experienced team leading the implementation of a new business model developed to address the pain points of cost-conscious travelers around the world.
Vanada said that, “Budget travel is booming and is a multi-billion dollar market, so it’s safe to say that this business model has big market potential. If we look at LCCs, they have seen a huge growth in the last decade or so, and we believe it is only a matter of time before the budget hotels follow suit.
“Apart from being a good investment, NIDA Rooms is led by two very experienced people, Chairman and Co-Founder, Dennis Melka and Avili. Avili has extensive experience in the budget travel industry, and we believe that Avili and Melka, together with their team, are the best people to execute this business.” added Vanada.
Currently in Indonesia, NIDA Rooms has partnered with over 1,000 hotels located in various cities across the country, with a target of 2,000 hotel partners by the end of 2016.
The Board of Directors of NIDA Rooms is pleased to announce the appointment of Justin Cohen as its new Board Member effective immediately.
Justin Cohen has comprehensive knowledge and experience in the e-commerce and digital sectors along with a strong background in online startups. Justin has served as Board Director, Managing Director and senior roles for several companies, including 90min.com, J Squared Pte Ltd, NEC Computers, PartyGaming PLC, and HomeGuru Pty Ltd.
“Justin’s vast experience will add a valuable perspective to our Board and we look forward to benefitting from his digital and product development experiences,” said Melka.
As ASEAN’s largest and fastest growing “Virtual Hotel Operator (VHO)”, NIDA Rooms remains committed in its value proposition of 3Rs - Right Location, Right Price and Right Quality to its customers. This is in keeping with the “A Good Night, Every Night” spirit promoted by NIDA Rooms through a comprehensive range of facilities available in all NIDA Rooms, including complimentary wi-fi, hot showers, air conditioned rooms, high quality amenity kit. Through NIDA Rooms, customers can instantly navigate and book thousands of affordable priced rooms in Indonesia, Malaysia, Thailand and Philippines via our website at www.nidarooms.com and our mobile application on Google Play Store or Apple App Store. NIDA Rooms’ commitment to our hotel partners increases their 3Rs - Reach, Revenue and Recognition.
NIDA Rooms was introduced in Indonesia as a VHO by Global Rooms Limited on 2 December, 2015. Our hotel rooms are situated in strategic locations in Indonesia, such as the Greater Jakarta, Bogor, Depok, Tangerang and Bekasi Area (Jabodetabek), Surabaya, Medan, Bali, Bandung, Kalimantan and Sulawesi.
To date, NIDA Rooms has over 3,500 hotels partners with over 800 hotels in Malaysia, over 1,500 hotels in Thailand and over 119 hotels in the Philippines. NIDA Rooms also sets its sights on expansion to Vietnam and South America in the future.
Convergence Ventures is an early stage technology venture fund focused on Indonesia. Our Partners are seasoned entrepreneurs with extensive operating experience in Internet businesses in emerging markets. We seek to back exceptional founders to leverage our experience, network and resources to empower them to build long lasting and impactful businesses for Indonesia and the South East Asia region. Our Advisory Board and Limited Partners from the US, China and Indonesia have backed hundreds of technology businesses in the past decade. Collectively they bring deep local networks, resources in media and related industries to our founders.
CyberAgent Ventures was established in 2006 in Japan, focusing on investments in the Internet sector. It went on to set up offices in 7 other countries while maintaining its focus, and expanded its operations to Southeast Asia in 2008. It has made investments in more than 30 companies in the region, including companies such as Tokopedia, Orami, and Vatgia. In mid-2015, CyberAgent Ventures also announced a $50M fund for Southeast Asia, with a strong focus on the Indonesian market.