Despite travel delays and cancelations brought on by the pandemic, real estate startups have noticed an uptick in interest from city dwellers seeking out a peaceful escape. Those looking to leave behind the metropolitan hustle and bustle have found solace in nearby “staycations” to more rural areas of the United States.
One such startup, Kasa Living, has recently taken notice of this trend. The San Francisco-based startup has maintained occupancy rates of approximately 75 percent over the past nine months, according to the company.
Kasa announced Tuesday that it raised $30 million in a Series B to help it scale in response to increased demand. The round was led by Ribbit Capital and follows the company’s $20 million Series A, which it closed on less than a year ago.
Kasa doubles as both a booking platform and property management company. The company utilizes its suite of technology to create short-term rental listings by leveraging vacant units inside hotels and apartments. Its “rent tech” enables the company to manage thousands of units across various property sizes and locations.
“We see a generational opportunity to innovate in a beleaguered travel sector. [We] aspire to build a global accommodations brand beloved by guests, indispensable to property partners, and desired by neighbors,” founder & CEO Roman Pedan said in a statement.
Kasa currently has management agreements with property owners in 35 markets across 15 states. A typical rental with the company will cost you roughly $130 per night.
The additional capital will be used to help the company improve its software and streamline its operations. Kasa will be looking to further invest in its technology team as the company continues to scale, according to Pedan. Kasa is now hiring for several open positions at its San Francisco office.
The company has introduced an array of new safety measures in response to the pandemic. In addition to updated cleaning and sanitization efforts, Kasa will provide a full refund to any guest that cancels due to falling ill. Existing features like contactless check-in will appeal to guests looking to minimize social contact while traveling.
According to the company, Kasa has expanded units under management by 50 percent over the past nine months. Pedan said on Twitter that he is “immensely proud” of how Kasa’s team has handled such a challenging time.
Forbes reports that Kasa now has nearly 1,000 rooms available, generating 100,000 yearly bookings and annualized sales of about $30 million.
