Airbnb has well revolutionized the planet of tour accommodation, altering the interaction not just all around how users find out and book places to reside. However, what they anticipate when they obtain there, and what they predict to reimburse. Recently, one of the startups traveling that wave is declaring a big round of money to increase its involvement in the market.
Domio, a startup, which designs & then leased out apart-hotels with kitchens & new full-home experiences, has lifted $100 million to make more significant business in the U.S. & worldwide to 25 marketplaces by subsequent year, up from 12. Its objective users are millennials roaming in groups or relatives swayed by the size & range of the accommodation — usually five times more than the standard hotel room and the price, which is on regular 25% inexpensive as compared to a hotel room.
The Series B that indeed shut down in August in 2019 was guided by GGV Capital, along with a contribution from Tribeca Venture Partners, Eldridge companies, SoftBank NY, 3L Capital, Upper90, and Tenaya Capital. Upper90 even led the balance round, which is going to be utilized to rent and set up novel properties.
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Domino isn’t revealing its valuation; however, the founder and CEO, Jay Roberts, said in a conference that it is a “huge up-round” and approximately 50x the cost it had in its seed round & that the organization has tripled its ROIs in the previous year. Before this, Domio had merely raised approximately $17 million, as per the data from PitchBook.
For a few contrasts, Sonder, the other organization that sold out the serviced residences to the sort of voyagers who has a flavor for boutique hotels — previous this year lifted $225M at an assessment north of $1B. Others, such as Guesty, which are developing stages for others to catalog and administer their apartments on stages, such as Airbnb, lately, raised $35M with an assessment possible in the variety of $180 to $200 million. Airbnb is predicted to be valued at approximately $31 billion. Domio plays in a thrilling bend of the marketplace. For beginners, it focuses its rooms at a lot of similar demographics as Airbnb.
On one side, where Airbnb provides an absolute jumble of rooms & homes, on the other, Domio provides predictability and steadiness with its inventory.
Roberts, who formerly worked in real estate investment banking, said, “We are competing with amateur hosts on Airbnb.” “This is the next step, a modern brand, the next Marriott but with a more tech-powered brain and operating model.”
These aren’t to be puzzled with anything like Homewood Suites of Hilton, Roberts emphasized. He defined Homewood as “a soulless hotel chain.” Adding further, he said, “Domio is the anti-hotel chain.”
Roberts is even rapid to explain how Domio isn’t a real estate organization as much as it’s tech-powered commerce. It generally sets up its rooms in newer or totally new buildings, where app developers — at the slightest up to now — are not typically building with temporary rentals in mind. Rather, they are thinking of an alternative like Domio as an option to advertising as apartments, something that may come up if they are experiencing that there is a diminishing in the marketplace. “We typically have 75%-78% occupancy,” Roberts said.
“Investors are starting to go out to buy properties on our behalf and lease them to us,” he said. This provides the startup more positive rate & terms on those deals. “The next step is that Domio will manage these directly.”
With the help of this technology to recognize where to produce isn’t the mere region where technology plays a role. Roberts said, “Everything you can do by speaking to a human in a traditional hotel, you will be able to do with the Domio app.” “You can book your Uber through the Domio app, or sync your Spotify account to play music in the apartment.
Though Airbnb has full-fledged to be almost as ubiquitous as hotels, the more extensive travel & accommodation marketplace is yet ripe for the taking, predicted to arrive at $171 billion by 2023, as well the highest enlargement area in the travel business.
Hans Tung, GGV’s managing partner, said, “Airbnb has taught us that hotels are not the only place to stay,” “Domio is capitalizing on the global shift in short-term travel and the consumer demand for branded experiences. From my travels around the world, there is a large, underserved audience — millennials, families, business teams — who prefer the combined benefits of an apartment and hotel in a single branded experience.”
Adding further, he said, “One of the things we liked about Domio is that is very capital-efficient,” “focusing on the model and payback period. The short-term nature of customer stays and the combination of experience/price required to maintain loyal customers are natural enforcers of efficient unit economics.”
“For GGV, Domio stands out in two ways,” he continued. “First, CEO Jay Roberts and the Domio team’s emphasis on execution is impressive, with expansion into 12 cities in just three years. They have the right combination of vision, speed, and agility. Domio’s model can readily tap into the global opportunity as they have the ambition to scale to new markets. The global travel and tourism spend $2.8 trillion, with 5 billion annual tourists. Global travelers like having the flexibility and convenience of both an apartment and hotel — with Domio, they can have both.”