Samena Capital invests Rs 1 billion in fresh funding in Bloom Hotels

Bloom Hotels Wednesday said it has further raised Rs 1 billion in a fresh round of funding from Samena Capital, taking the principal investment group's stake in the company to 45 per cent.

Samena Capital had earlier, in April this year, invested Rs 1 billion in a series B investment round in Bloom Hotels for 35 per cent stake in the company.

"With a view on keeping up with the company's accelerated growth and management's effective on the ground execution, Samena Capital has raised its Series B investment to Rs 2 billion within a few months after the initial investment into the company," Bloom Hotels said in a statement.

With the additional investment of Rs 1 billion, the stake of Samena Capital in the company has increased to 45 per cent, a Bloom Hotels spokesperson said.

The company is targeting signing a 100 hotels within the next 18 to 24 months as part of its first phase growth, it added.

The additional capital will be utilised to complete the first stage of growth cycle and continue to focus on quality sites and developers, the statement said.

Commenting on the development, Samena Capital Founder and Vice-Chairman Shirish Saraf said, "We have decided to increase our investment commitments in Bloom within a short period of time in view of the quick brand roll out that is underway, combined with effective execution by the management team."

After successful launches in tier 1 markets, the company has turned its attention to the high-growth tier 2 and 3 markets, the statement said.

"We are energised by their follow-on investments which will help boost the growth trajectory and help us get to targets ahead of schedule," Bloom Hotels COO Sanjeev Sethi said.

The company's pace of growth has picked up significantly after Samena's initial investment into Bloom, he added.

Earlier in June this year, Bloom Hotels had won the auction for Hotel Asian International located on Janpath in Delhi.

The company has several new hotels under development in locations such as Aurangabad, Varanasi, Lucknow, Vijayawada and Amritsar among others, Bloom Hotels said.