Indonesia-based accommodation startup Bobobox has secured US$11.5 million in Series A funding round of funding, led by Horizons Ventures and Alpha JWC Ventures.
Kakao Investments, Sequoia Surge, and Mallorca Investments also joined the round.
The Bandung-headquartered startup will use the money to accelerate its product improvement and location expansion. It wants to enhance ‘Pods’ features and overall experience by growing its tech team and strengthening its manufacturing and operating models.
Founded in 2017, Bobobox is a capsule network with a vision to be the recharging facilities for everyone to get quality rest. Its capsule rooms, or ‘Pods’, are equipped with app-controlled secured door access, customisable lights, Bluetooth speaker, king-size and single-size bed, compact working space, and personal air conditioner. The prices start from US$10 per night.
Surviving COVID-19
Pre-COVID-19, Bobobox operated eight buildings with more than 500 pods in total and an average occupancy rate of 80-90 per cent. Amidst the crisis, its occupancy rate in March dropped to 50-60 per cent whilst other hotels were already at single digit and many had shut down.
“Despite the turbulence due to the pandemic, we are grateful that we can still lock in investment from global investors,” said Bobobox Co-founder and CEO Indra Gunawan.
The pandemic also opens new opportunities to Bobobox as local users become new regulars of the pods instead of the usual foreign tourists.
Also Read: Indonesian capsule hotel startup Bobobox raises pre-Series A funding round
To cater to the demand while keeping both its team and customers safe, Bobobox has applied extra preventive measures, including limiting numbers of guests and closing common areas. The company has made no changes to the cancellation fees to maintain customer trust.
“With extended preventive measures in place, many locals have relocated to our pods to improve their work-from-home experience. Some would choose Bobobox with the closest distance to their workplace to avoid long commutes to work, limiting their exposure to crowded public facilities,” said Bobobox Co-founder and President Antonius Bong.
Bong continued that the situation also has allowed the startup to show more use cases of its sleeping pods. “With little modifications, we have installed more than 100 pods in hospitals as comfortable shelters for doctors and health workers so they can rest better while remaining close to their patients. We have been getting great feedback from the medics and local governments on these facilities.”
Since its funding announcement last year, Bobobox added six new locations in three cities: Bandung, Jakarta, and Semarang.
Bobobox also has four new locations in three cities ready to launch subject to COVID-19 circumstances.
—
Picture Credit: Bobobox
The post Bobobox raises US$11.5M funding when many of its peers in the hospitality sector are on the brink appeared first on e27.