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