Back News / SaffronStays raises about $2M funding from Sixth Sense Ventures
SaffronStays raises about $2M funding from Sixth Sense Ventures
July 17, 2018Micro-hospitality startup SaffronStays has about $2 million from consumer-centric venture capital firm Sixth Sense Ventures. The pre-series A investment marks the first institutional round into the firm and will help SaffronStays expand the number of holiday properties under its platform.
Founded in 2015 by Devendra and Tejas Parulekar, SaffronStays curates and manages hospitality operations, reservations, branding and marketing for private vacation homes owned by high networth individuals. The firm currently operates 45 homes across six states in India and claims to host over 1,500 guests every month.
“We are excited to have Sixth Sense Ventures as our partners in our entrepreneurial journey. We hope to use this money to expand our footprint, work on innovative business models, strengthen our operations and improve our technology backbone,” said Devendra Parulekar, Founder of SaffronStays. As part of this investment, Nikhil Vora, Founder & CEO of Sixth Sense Ventures will join the board of SaffronStays.
Hospitality being a high margin sector, SaffronStays claims to be cash flow positive at a unit level even as it clocks about Rs 5 crore in annual revenues.
“The Indian travel market is massive and yet underserved. We believe that SaffronStays is very well equipped to capture this market with its exclusivity and well-curated offerings and parallely create an opportunity for homeowners to monetize their most valuable and expensive asset,” said Vora on the investment.
Currently operational around Mumbai, Pune, Goa and a few locations around Uttarakhand, Rajasthan and Tamil Nadu, the firm is looking to scale to about 125 properties by the end of 2018 even as it looks to scale to over 1,000 homes over the next 5 years.