Mumbai-based managed holiday-home platform SaffronStays has raised $3.5 million (around ₹30 crore) in a funding round led by Infinity Ventures, with participation from several family offices. The funding round included a mix of new primary capital and a portion of the company's existing investors' stake via a secondary sale from the existing investor Sixth Sense Ventures, who first invested in the company during its seed round in 2018.
SaffronStays is an online platform for managed holiday-home rentals launched by Tejas Parulekar and Devendra Parulekar in 2015. The company works with property owners to professionally run villas, heritage properties, estates, cottages and holiday homes all over the country, and provides travellers with tailor-made stays and experiences in popular holiday destinations.
The fresh capital will be used to help accelerate the company's growth at existing and new leisure destinations, to bolster its technology platform, to boost product development, to enrich the guest experience and significantly increase the number of homes managed by the company. The company will also look to strengthen its market in India's rapidly expanding premium and experiential travel segment, which includes family holidays, celebrations, corporate off-sites and destination-based travel.
Key Highlights:
- SaffronStays raises $3.5 million in a funding round led by Infinity Ventures
- Funds will support expansion, technology upgrades, and growth of its managed holiday-home portfolio across India
- The company manages 450+ properties across 80+ destinations and has remained profitable for four consecutive years
Currently, SaffronStays has more than 450 holiday homes in over 80 destinations in India with a presence in 17 states which includes Maharashtra, Goa, Himachal Pradesh, Uttarakhand, Karnataka, Kerala, Rajasthan and the Delhi NCR region. Professionally managed vacation rentals are in demand, and the company has seen a phenomenal growth in the past two financial years with an inventory surge of 70% in North India, 90% in South India and an astounding 200% in Goa.
While other start-ups are mainly concentrating on aggressive growth, SaffronStays has been concentrating on sustainable growth and profitability. It has been profitable for the past four years, and continues to invest in technology, operations and customer experience, the company said. Today, over half of its income is generated from premium homes and almost 70% of its business is from direct bookings, taking it further away from the influence of online travel agencies.
In the fundraise's address, Devendra Parulekar, Co-founder & CEO of SaffronStays, stated that the company has always been about profitability and growth at all costs. The new investment will help the company bolster its technology prowess, reach new destinations as well as bolster its leadership position in the managed holiday-home business in India, he said.
The firm is also refining its focus on the luxury hospitality market, with the introduction of luxury villas and experiences based around a destination.
Recently, SaffronStays revealed its plans to explore opportunities in the religious tourism segment, which is one of the fastest-growing travel segments in India by introducing its multi-generational family travel accommodation near the major pilgrimage sites. It also has plans to create five regional business units in the following couple of years to further boost its overall presence across the country.
The Indian managed holiday home market has been gaining significant traction in recent years, thanks to the growing number of domestic holidays, the emergence of the private holiday home market and the increased demand for experiential stays, as well as the rise of second home ownership. As the industry adapts to these changing travel trends, SaffronStays is poised to take advantage of this with fresh funds, a successful business model and a growing premium holiday home collection.
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