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Matrix Partners India and SAIF Partners invest $6 million in Treebo

Bangalore, India - June 23, 2015: Matrix Partners India and SAIF Partners today announced that they have co-led a $6 million first institutional round of funding for Treebo Hotels, a new age, tech-enabled chain of hotels offering quality accommodation to travellers at affordable prices. Treebo will use these funds for expanding its network of hotels, developing state-of-the-art technology and hiring top talent. Treebo was founded by Sidharth Gupta, Rahul Chaudhary and Kadam Jeet Jain. Before launching this venture, Sidharth and Rahul worked as Vice-Presidents at Flipkart-Myntra leading several strategic initiatives for the group and were colleagues at McKinsey & Company before that. Their co-founder and fellow-alumnus from IIT Roorkee, Kadam, comes with 9 years of startup experience and until recently was the VP-Engineering for MyGola, an online travel company that was acquired by MakeMyTrip earlier this year. “Currently there are upwards of 10 lakh budget hotel rooms in India. But 95% of them are in the unorganized segment. Therefore, despite the availability of online booking options and third party reviews, the lack of quality assurance continues to be an unsolved problem for the traveller in this segment. This is the problem we are focused on solving. Our hotels come with an unprecedented ‘100% Quality Guarantee’. We believe there is a huge untapped opportunity in this space and ability to deliver great customer experience will be the key success factor.” said Sidharth Gupta, co-founder of Treebo Rahul Chaudhary, co-founder of Treebo added, “Our unique, asset-light business model and strong team has allowed us to build an inventory of over 200 carefully curated rooms in Bangalore in a short span of two months. Over the course of the year we will partner with high-quality budget hotels to scale to a network of 5,000 rooms across 20 cities. SAIF and Matrix are two of the most respected names in the venture capital world and have mentored several successful startups in the country. They share our passion and commitment towards offering a quality experience to customers. We are delighted to have them both as partners in our growth.” “It is our privilege to be associated with Rahul, Sidharth and Kadam, the co-founders of Treebo. The biggest challenge in the highly fragmented budget hotel space is the lack of standardization. Travellers are skeptical of what to expect when booking a room at an unbranded property. With a trusted brand like Treebo, customers can book with confidence knowing that all Treebo properties will have a safe, comfortable and standardized service offering at an affordable price.” said Tarun Davda, Director, Matrix India. “The budget hotel segment in India will continue to experience strong growth driven by growth in both business and leisure travel. The model adopted by Treebo has already seen tremendous success in China, which until a decade back was an unorganized market similar to what we see in India today. We are confident that Treebo can emulate that success in India and unlock immense value by solving a genuine problem faced by travellers today.” said Mayank Khanduja, Vice-President, SAIF Partners. About Treebo Hotels: Treebo Hotels, founded in March 2015 by ex-McKinsey consultants Sidharth Gupta and Rahul Chaudhary, and ex-VP Engineering of MyGola, Kadam Jeet Jain, is a chain of affordable, comfortable, and reliable hotels providing genuine value for money to travellers. The Company partners with small, standalone hotels and helps them improve their service quality standards and also market themselves more effectively. The core pillars of the company are technology innovations (both for superior customer experience as well as for reliable backend operations), on-the-ground process discipline, and new-age marketing (digital and offline). It offers a win-win proposition for both the customers and the hoteliers. To know more, please visit www.treebohotels.com About Matrix Partners India: Matrix Partners India is an investment firm with INR 3,000 crore under management. The firm invests in companies targeting the Indian consumer market at the seed, early and early growth stages. The firm has invested in several market leading companies in the consumer technology space including Ola (local transportation marketplace), Quikr (online classifieds), Practo (doctor search engine), Stayzilla (short term accommodation marketplace), LimeRoad (mobile social commerce marketplace), Newshunt (mobile local language platform), TinyOwl (food ordering app), MSwipe (mobile POS), Belong (recruitment + big-data platform) and WeAreHolidays (outbound travel marketplace) among others. Matrix Partners has a global network of funds investing in the US, China and India with US $3 billion under management. Further information is available at www.matrixpartners.in About SAIF Partners: SAIF Partners is one of the leading investment firms in Asia with over USD 1 billion under management in India. The firm invests in early to growth stage companies across sectors such as mobile, internet, consumer products, industrials, financial services and IT. Some of its marquee investments include JustDial (local search engine), Paytm (m-commerce platform), Urban Ladder (online furniture retailer), MakeMyTrip (online travel company), Toppr (online test prep solutions provider), Bookmyshow (online advance ticketing company) and Firstcry (online baby & kids store). Further information is available at www.saifpartners.com Veritas Legal served as legal advisors to Matrix Partners India and SAIF Partners on this transaction. Further information is available at www.veritaslegal.in

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