Hospitality services startup Hostmaker raises $2 mn from DN Capital & others.
New Delhi, India | Red Newswire | By ET Bureau | Nov 19 2015 01:47 AM IST.
Hospitality management services startup Hostmaker has closed a $2 million (Rs 13.2 crore) round of funding, led by a consortium of new and existing investors, including early-stage venture capital firm DN Capital and Deepak Shahdadpuri-led DSG Consumer Partners.
Proceeds from the seed round of funding will be used by the 18 month-old startup towards product enhancements and launching the second phase of its expansion plans to other European capitals. Hostmaker currently operates in London, Barcelona and Rome, and claims to to serve about 5,000 guests every month.
“We’re going to be in Paris and a couple of more European capitals over the next six months. We will also be investing in operations, technology, while bringing dynamic pricing to Airbnb homes,” said Nakul Sharma, founder and chief executive of Hostmaker.
The London-based startup enables Airbnb hosts, along with other homeowners, who offer short-term stays to holidaymakers and business travellers, to offer a high-quality service to guests, with housekeepers and concierges, while also helping the host to improve their listing, in order to get an increased number of bookings.
“The uncertainty of not knowing what you are going to get, is still a hurdle for many to book a home on Airbnb. Hostmaker’s aim is to bring hotel-quality consistent standards to homes across the world, without losing the uniqueness of the homes themselves,” he said.
Hostmaker offers hosts two options – a flat-fee pay-as-you-go model, where existing Airbnb hosts can pick a premium hotel-style housekeeping and linen service or an in-person guest welcome in their absence.
It also offers a fully managed option where the startup provides end-to-end services, which involve setting up of the listing, responding to enquiries, setting prices and managing yield, presentation of the home before the guest arrives and managing guest experiences.
According to Sharma, Hostmaker will also explore entering markets outside Europe going forward.
‘We will consider the Asian markets, especially the major urban areas, such as Mumbai, New Delhi and Bengaluru,” he said.
Other investors in the latest round include Avala Capital, Delivery Hero co-founder Nikita Fahrenholz and former Airbnb India and Middle East Managing Director Mohit Srivastava. The startup had previously raised £250,000 in November last year.
“The Airbnb economy has created a new opportunity for property owners to offer their homes as hosts. Hostmaker understands the needs of the hosts and guests and have developed a portfolio of products that helps hosts optimise yield and occupancy to maximise revenue whilst always ensuring that the guests have a wonderful stay,” said DSG Consumer Partners’ Shahdadpuri.
DSG Consumer Partners, the early-stage, consumer and technology-focused investor firm which has backed some of India’s most prominent consumer startups, such as OYO Rooms, Chai Point and Mswipe Technologies, is also exploring plans to raise its second fund.