New Delhi-based Bliss Inns Pvt. Ltd, which runs an asset-light resort management company under the brand name V Resorts, has raised $10 million (Rs 69.5 crore) in its Series A round of funding from a clutch of wealthy individuals.
The company’s existing investors venture capital firms Bedrock Ventures and RB Capital also participated in the round, it said in a statement.
The company will use the capital to expand its footprint in India and enter new markets across South Asia and the Middle East. It intends to reach over 1,000 properties and 15,000 rooms in the next three years.
“Our focus will remain on providing our guests with high-quality, unique experiences in new and unexplored destinations,” said Aditi Balbir, managing director and founder of V Resorts.
An alumnus of the Indian School of Business, Hyderabad, Balbir launched the venture in 2014. She has previously worked at Bedrock Ventures, Baring Private Equity Partners and McKinsey & Company.
V Resorts’ properties comprise of small rooms, thus reducing costs. Without the cost burden, the company claims that its properties break even at 20% occupancy within the first six to nine months and it achieves 50% profit margin within the first three years itself.
The company currently operates over 150 properties spread across 22 states. In 2018, it launched its in-house local store, Pitara, where the company works with local women’s groups to package and sell their products.
“There is a general shortage of hotel rooms in leisure destinations across India. V Resorts uses technology to improve discoverability and monetises idle inventory across locations,” said Vikram Puri, director of Archer Hospitality and one of the investors in this round.
The company had raised $4 million in 2017 from investment firm RB International and early-stage investor Seedfund in its last institutional round of funding.
Deals in the space
In the past few months, investors have India’s budget hospitality chain segment cut large cheques from the institutional investors.
In February this year, OYO raised $100 million (Rs 709.4 crore then) from Chinese ride-hailing firm Didi Chuxing to close its then-ongoing $1 billion investment round.
Around $900 million was put in by Japanese conglomerate SoftBank, Singapore ride-hailing company Grab and others.
In December 2018, Imperativ Hospitality Pvt. Ltd, which runs a budget hospitality chain under the Bloom Hotels brand, secured an additional Rs 100 crore ($14.3 million) as part of its Series B funding round from private investment firm, ad its existing investor, Samena Capital.