Managed revenue grows by over 6x since its
Series B in October 2020
NEW
YORK, Oct. 31, 2023 /PRNewswire/ -- Kasa Living, Inc., the leading tech-powered
hospitality brand, today announced the close of a $70 million Series C fundraise. Citi Ventures and
FirstMark Capital led the all equity round with participation from
new investors New York Life Ventures and Fireside Investments. All
major existing investors including RET Ventures, Zigg Capital, and
Ribbit Capital participated in the twice upsized and oversubscribed
round.
Jonathan Langer, a seasoned
industry veteran with board experience at KKR Real Estate Finance
Trust (NYSE: KREF), Westin Hotels & Resorts, and Hilton Hotels
& Resorts (NYSE: HLT) has joined Kasa's Board of Directors.
Robust Financial Strength Amid Market Challenges
This funding round is a strong validation of Kasa's proven,
asset light business model especially noteworthy against the
backdrop of the most challenging PropTech fundraising environment
in the past decade. After the fundraise, Kasa has the strongest
balance sheet in the industry which allows Kasa to go on offense to
grow its property portfolio meaningfully without the need for
further external funding.
Technology-Powered Hospitality
Kasa has built a truly differentiated proprietary hospitality
operating system that materially improves profits for owners and
enhances the experience for today's modern travelers across a
diverse range of investor-owned accommodations, including
multifamily apartments, single-family homes and boutique hotels.
Kasa consistently improves property profitability by >50% and
uplevels property review scores meaningfully across a wide range of
channels. Kasa operates the number one rated properties in their
category on Tripadvisor in Seattle, Chicago, Denver, and Austin, as well as top-5 properties in
San Francisco and Pittsburgh.
Strategic Partnerships Catalyze Growth
Kasa's success in increasing profitability after taking over
properties has attracted interest from a consortium of real estate
investors. These partners have dedicated over a billion dollars
to-date to invest in real estate powered by Kasa, setting the stage
for rapid, capital-efficient expansion for the leading tech-powered
accommodations company in the years ahead.
"Kasa's proprietary operating system allows its real estate
partners to adapt to changing resident and guest preferences while
optimizing for profitability, safety, and visibility across
multiple asset types," said Jeff
Flynn, Head of PropTech Investing at Citi Ventures. "We
believe that Citi can be a valuable partner to Kasa and its real
estate owners as they continue to expand their property
footprint."
"We stand at a watershed moment in the evolution of the
hospitality industry. Owners are grappling with rising costs, while
consumers crave a seamless, digital-first travel experience in
desired locations. Kasa is bridging this gap, revolutionizing the
way owners and guests alike think about accommodations. Our model
isn't just an alternative; it's the future" said Roman Pedan, Founder & CEO of
Kasa.
Trusted by the Most Discerning Real Estate Investors
Kasa has earned the trust of some of the world's most discerning
real estate owners, including global stalwarts like Greystar, AMLI
Residential, and Starwood Capital and local hospitality investors
and developers in cities like San
Francisco, New York,
Miami and Nashville, further solidifying its position as
the industry standard for alternative accommodations.
"The consumer trends behind furnished apartment rentals are very
strong. The industry is at a turning point as apartment owners
increasingly seek ways to harness this demand," said Andrew Livingstone, Chief Operating Officer of
Greystar, the largest manager of apartments globally, "We have been
extremely impressed by Kasa's platform and are proud to work
alongside them in some of our communities. We believe Kasa has
become an industry standard and are proud to have them as our
recommended supplier partners for the sector."
Investor Quotes
"Kasa is setting the industry standard in the short-term rental
market, especially within institutionally owned apartment
communities," said Christopher Yip,
partner at rental technology focused venture capital firm RET
Ventures. "We and our limited partners who represent over 2.5
million apartment units evaluated over a dozen companies in the
sector, and Kasa stood out for the strength of its trust &
safety systems, the quality of its guest experience and the level
of profitability that it delivers to its partners."
"We've been impressed by Kasa's relentless execution and
resilience throughout a rapidly changing real estate, technology
and travel market," said Adam
Nelson, Managing Director at FirstMark Capital. "Kasa has
continued to impressively scale utilizing an asset-light business
model which has proven to drive long-term sustainable margins and
meaningful public market equity value."
"In my three decades in the hospitality industry, I've seen
countless innovations come and go, but Kasa's truly unique ability
to empower smaller hotel owners to excel against industry giants is
an enduring game changer for the future of hospitality," said
Jonathan Langer, Founding Partner
and Managing Member of Fireside Investments. "I have never seen
hotels in high cost cities like New
York or San Francisco
operate at the margins and guest satisfaction scores that
Kasa-powered properties deliver."
Key Takeaways
- Kasa closes a $70 million Series
C funding round, defying market trends.
- Proven ability to dramatically improve property profitability
by >50%.
- Strategic partnerships with institutional investors pave the
way for rapid expansion.
Discover a curated collection of exceptional accommodations
across the U.S. at kasa.com.
For partnership opportunities to enhance your property's
profitability, visit kasa.com/property-partners.
About Kasa:
Kasa Living, Inc. is a
tech-powered, flexible accommodations brand and operator founded in
San Francisco in 2016 by
Roman Pedan. Kasa partners with real
estate owners to transform investor-owned multifamily apartments,
boutique hotels, and single-family homes into professionally
managed accommodations. Leveraging advanced technology and deep
industry experience with a team from Airbnb, KKR, and Apollo, Kasa
delivers high-quality experiences to guests of all types. For more
information, visit www.kasa.com.
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SOURCE Kasa Living
