Holiday homes-focussed fractional ownership startup HotelYaari has reportedly raised INR 18 Cr ($2.18 Mn) in a seed funding round from Alios Ventures.
Thee startup will receive the funding in three tranches over the course of the next three quarters.
“This is a major milestone for the company as it continues to expand its reach and establish itself as a leading player in the hospitality industry. The investment will be used to further develop the platform and hire more personnel to cater to the demand for fractional ownership of holiday homes and hotel suites.” Said Janardan Tiwari, Founder and CEO of HotelYaari Ecommerce Private Limited.
Founded in May 2023 by Janardan Tiwari, HotelYaari is a tech-driven fractional ownership platform that allows users to own holiday homes and hotel suites in four or five-star properties for as little as INR 5 Lakhs. Targeting India’s burgeoning middle class, the format allows users to own and earn from a hotel suite without having to buy the entire property.
The startup mirrors a concept similar to startups such as Pacasso in the US and Kocomo in Mexico, which allow customers to own a fraction of a property without having to actually purchase it.
Fractional ownership, especially in the real estate sector, aims to cash in on the ever-present affinity of Indians towards the industry. However, prohibitive prices, complex processes and lengthy compliances largely limited such ambitions. However, the emergence of fractional ownership has addressed many of the key pain points offering users a safe, secure and less pricey way to own a part of a property.
Not the one to be left behind, the Indian startup ecosystem has also entered the space, looking to address this growing demand. Just last year, the Confederation of Real Estate Developers’ Associations of India (Credai) joined hands with incubator Venture Catalysts to set up a $100 Mn fund to invest in proptech startups.
A clutch of other incubators, accelerators and investors have also propped up, looking to back startups and scale them up.
As per a report by Knight Frank, the Indian fractional ownership market is projected to soar to $8.9 Bn by 2025 from $5.4 Bn in 2020.
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