US: Kasa Living, a tech-powered, flexible accommodations brand and operator, has closed a $70 million Series C fundraise to fund and accelerate its expansion across the United States.
The equity round was led by Citi Ventures and FirstMark Capital, 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, Westin Hotels & Resorts and Hilton Hotels & Resorts, has joined Kasa’s board of directors.
In the face of a challenging investment landscape, Kasa claims that the funding round and its asset-light business model have given it “the strongest balance sheet in the industry”, enabling the company to “go on the offensive to grow its property portfolio meaningfully without the need for further external funding”.
The San Francisco-based brand has built a differentiated proprietary hospitality operating system that is designed to improve profits for owners and enhance the experience for modern travellers across a diverse range of investor-owned accommodations. These include multifamily apartments, single-family homes and boutique hotels.
Jeff Flynn, head of proptech investing at Citi Ventures, said: “Kasa’s proprietary operating system allows its real estate partners to adapt to changing resident and guest preferences while optimising for profitability, safety, and visibility across multiple asset types. We believe that Citi can be a valuable partner to Kasa and its real estate owners as they continue to expand their property footprint.”
Roman Pedan, founder and CEO of Kasa, said: “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, revolutionising the way owners and guests alike think about accommodations. Our model isn’t just an alternative; it’s the future,” he added.
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.
Andrew Livingstone, chief operating officer of Greystar, said: “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.
“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,” he added.
Christopher Yip, partner at rental technology-focused venture capital firm RET Ventures, said: “Kasa is setting the industry standard in the short-term rental market, especially within institutionally owned apartment communities. 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 and safety systems, the quality of its guest experience and the level of profitability that it delivers to its partners.”
Adam Nelson, managing director at FirstMark Capital, said: “We’ve been impressed by Kasa’s relentless execution and resilience throughout a rapidly changing real estate, technology and travel market. Kasa has continued to impressively scale utilising an asset-light business model which has proven to drive long-term sustainable margins and meaningful public market equity value.”
Jonathan Langer, founding partner and managing member of Fireside Investments, said: “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. 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.”
Kasa previously raised $50 million in funding in October 2020, including $30 million in Series B funding and $20 million in Series A funding.