Hospitality platform SaffronStays has raised $3.5 Mn (around ₹29 Cr) in a mix of primary transactions and a secondary stake sale.
Infinity Ventures led the fresh capital infusion alongside prominent family offices while existing investor Sixth Sense Ventures partially sold its stake in the startup. Sixth Sense backed the startup in its $2 Mn seed funding round.
The Mumbai-based startup plans to use the capital to fuel its expansion into existing and emerging leisure destinations, scale up its technology stack, and expand its portfolio of managed holiday homes and villas across India.
“SaffronStays has always focused on building a sustainable and profitable hospitality platform rather than chasing growth at any cost … Throughout this journey, we have remained profitable while continuing to invest in technology, operations, and guest experience. This capital raise allows us to accelerate those investments and further strengthen our position in India’s managed holiday-home market,” said co-founder Devendra Parulekar.
Founded in 2015 by Devendra and Tejas Parulekar, SaffronStays curates and manages hospitality operations, reservations, branding and marketing for private vacation homes.
It claims to have been profitable for four consecutive years while growing its property portfolio by more than 150% over the past three years.
Looking ahead, the startup aims to capitalise on its direct booking channel, which currently drives nearly 70% of its business. Its long-term goal is to establish five regional business units, with each unit targeting ₹100 Cr in annual business, while maintaining operational profitability and customer satisfaction.
Notably, one of the biggest players in the hospitality space, OYO parent PRISM, is also betting big on the premium segment. Its subsidiary Sunday PropTech raised ₹50 Cr last year to fuel the launch of 40 new four- and five-star hotels, aligning with the company’s broader goal of increasing its revenue by focusing on company-serviced hotels rather than franchises.
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