Mumbai-based SaffronStays, a micro-hospitality startup has raised ₹13.7 crores in pre-series A funding from consumer-centric venture capital firm Sixth Sense Ventures. This round marks the first institutional investment in the startup. Sixth Sense Ventures will now hold a significant minority stake in the startup and Nikhil Vohra is set to join the board of SaffronStays.
The funds raised will be used to expand properties under the platform, accelerate growth and hire talent.
Talking about the investment, Nikhil Vora, Founder & CEO of Sixth Sense Ventures, said, “At Sixth Sense, we would strive to always back kick-ass promoters (Deven and Tejas), in a big-ass market ($40 Bn space) with a smartass product (Holiday Homes). We believe that SaffronStays is very well equipped to capture this market with its exclusivity and well-curated offerings and parallelly create an opportunity for homeowners to monetize their most valuable and expensive asset.”
SaffronStays was founded by Devendra Parulekar and Tejas Parulekar in 2015 with its headquarter in Mumbai. SafftronStays partners with esteemed owners of second homes to offer its clients a curated holiday experience through hospitality operations, branding, and marketing of these homes.
It manages and operates 45 homes across six states in the country and serves 1,500 guests every month.
The company will be looking to strengthen its operations using technology and explore innovative business model to expand the business, in lieu of its partnership with Sixth Sense Ventures, utilizing its experience and expertise.
India’s travel industry is on a steady growth trajectory, which is a good news for the future of hospitality industry in the country. Oyo is currently a leader in India’s hospitality industry and it has recently announced its plans of venturing into the wedding industry, along with strengthening its technology-based infrastructure by acquiring AblePlus.
Along with Oyo, SaffronStays will be competing in this space with the likes of FabHotels, and Treebo Hotels.