Hotels.ng secures $1.2m investment for expansion

Nigeria’s online hotel booking agency, Hotels.ng, has secured $1.2 million, about N240 million investments from international investors. The investment came from international investors including seed-stage technology fund, EchoVC Pan-African Fund and Omidyar Network, the investment vehicle of eBay founder, Pierre Omidyar.

In a sector plagued by dearth and apathy of indigenous investors, Hotels.ng has become the only e-commerce company in Nigeria with the most indigenous investment of up to 90 percent, having also received seed investment of $225,000, about N36 million in 2013 from Lagos-based venture capital firm, Spark.ng.

Started in 2013 on the heels of e-commerce revolution in Nigeria, Hotels.ng has spearheaded online hotel booking in the country with over 7,000 hotels listed from across the country.

The company says with the closure on this investment round, the company is now strategically positioned to invest further in its technology capacity and further expansion across Africa.

Speaking on the investment, Mark Essien founder/CEO of Hotels.ng, said: “We’re forging ahead into relativelyp uncharted territory; E-commerce in Africa is a massive market to conquer, but there are no hard and fast prototypes from which to follow. We cannot simply replicate western models here. We have to build our own blueprints from scratch, which takes significant investment, both in terms of time and money. This additional capital will allow us to realise the next stage in our ambitious growth plans, which will see us consolidate our position as Nigeria’s market leader in online hotel bookings, with a view to expanding our service into other African markets.”

Also speaking, Jason Njoku, managing partner of Spark.ng, said: “Mark and his team are the future of Africa’s digital economy; They are hungry for success, innovative in their approach to building their market and rigorous in their business execution. Closing on this funding round is a big win, not only for Hotels.ng, but for all African internet start-ups. It is proof, if any more were needed, that the Internet market in Africa is extremely appealing for VCs, more of whom are now looking to create value and build big on the continent.”

For Ory Okolloh, investments director at Omidyar Network, “Omidyar Network knows firsthand the power of e-commerce to drive social and economic development. Hotels.ng hits all the marks of an investment with positive impact by leveraging online technology to connect buyers and sellers, supporting local small and medium businesses, and boosting consumers’ confidence in digital channels.”

On his part, Eghosa Omoigui, managing partner, EchoVC Pan-African Fund, said: “We were attracted to the Hotels.ng opportunity in part due to the vision, leadership and integrity of its founder, Mark Essien, and the relentless execution the team displayed in building a profitable and robust e-commerce business in a challenging, but ultimately exciting market.

“Mark represents the type of high-quality and high-conviction African techpreneur that our fund is tasked with investing in. Hotels.ng is now in the very best position to continue on its upward trajectory of being West Africa’s foremost online travel and hospitality platform. Following a competitive selection process, we’re delighted to be an integral part of helping fuel their next stage of meteoric growth.”

 

Ben Uzor