Short-term rental brand Kasa Living has closed Series C funding of $70 million.
Citi Ventures and FirstMark Capital led the equity round with new investors New York Life Ventures and Fireside Investments also participating. Existing investors RET Ventures, Zigg Capital and Ribbit Capital were also involved.
Kasa said it will have the “strongest balance sheet in the industry” after the funding, which will enable it to expand its property portfolio.
The company, which was founded in 2016 and operates multifamily apartments, single-family homes and boutique hotels in cities including Seattle, Chicago and Denver, said it improves property profitability by more than 50% for investors.
“We stand at a watershed moment in the evolution of the hospitality industry," ” said Roman Pedan, founder and CEO of Kasa. "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."
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Jeff Flynn, head of prop tech investing at Citi Ventures, said, “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. We believe that Citi can be a valuable partner to Kasa and its real estate owners as they continue to expand their property footprint.”
FirstMark Capital managing director Adam Nelson added, “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, utilizing an asset-light business model, which has proven to drive long-term sustainable margins and meaningful public market equity value.”
Earlier this year Kasa expanded into single-family luxury vacation rentals. The company previously raised Series B funding of $50 million in late 2020.