Nida Rooms says it scored new funding – after employees go unpaid for two months

Nida partner hotel reception desk. Some hotels partner with more than one budget hotel startup.

“I’m still working here, but honestly I’m seeking another job. I can’t describe what we are doing – we are working but not really working.”

This is how Alvin*, a long-term employee at budget hotel startup Nida Rooms described his situation mid-October. Employee morale had hit rock bottom.

After Tech in Asia reported about the startup’s financial troubles in September, things got even worse for a while.

Employees, including Alvin, had been waiting for their salaries for over two months. Complaints from partners were piling up too. “The payments to hotels were also delayed. And one by one, hotels asked to cancel their partnerships with us,” Alvin told us.

I can’t describe what we are doing – we are working but not really working.

Despite the negativity, the startup’s CEO Kanesh Avili thinks he can turn things around.

When we spoke in early November, Kanesh said Nida just locked in another round of funding, without detailing the terms of the deal. He said the money came from a “world-class investor” based in Singapore.

Tech in Asia’s contacts confirm that their outstanding salaries have finally been paid.

“Over the past three months we went through a tough time,” Kanesh admits.

But now, he claims, “Nida will have the financial muscle to stamp its leadership position in Asia.”

Uncontrolled burn

I spent a night at this Nida hotel in Central Jakarta as part of this investigation.

There are several reasons to believe Nida will need more than cash to become the successful company it strives to be.

The new round

Low barrier of entry

Confusing customer experience

Reimbursement gap

Faith lost

In the name of growth