With travel and tourism rising across Latin America, Casai, a startup combining Airbnb single unit rentals with hotel room amenities, has raised $23 million to expand its business across Latin America.
The company, which initially was hit as hard by regional responses to the COVID-19 pandemic as other businesses in the hospitality industry, has recovered to reach nearly 90% of total capacity on the 200 units it manages around Mexico City.
The company was co-founded by chief executive Nico Barawid, a former head of international expansion at Nova Credit and consultant with BCG, and chief operating officer María del Carmen Herrerías Salazar, who previously worked at one of Mexico’s largest hotel operators, Grupo Presidente.
The two met two years ago at a barbecue in Mexico City and began speaking about ways to update the hospitality industry, taking the best of Airbnb’s short-term rental model of individual units and pairing it with the quality control and standards that guests expect from a hotel chain.
“I wanted to define a product from a consumer angle,” said Barawid. “I wanted this to exist.”
Before the SARS-Cov-2 outbreak, Casai’s units were primarily booked through travel partners like HotelTonight or Expedia. Now the company has a direct brisk direct booking business thanks to the work of its chief technology officer, a former engineer at Google named Andres Martinez.
The company’s new financing was led by Andreessen Horowitz and included additional commitments from the firm’s Cultural Leadership Fund, Kaszek Ventures, Monashees Capital, Global Founders Capital, Liquid 2 Ventures and individual investors, including the founders of Nova Credit, Loft, Kavak and Runa.
Casai also managed to nab a debt facility of up to $25 million from TriplePoint Capital, bringing its total cash haul to $48 million in equity and debt.
The big round is in part thanks to the company’s compelling value proposition, which offers guests not only places to stay equipped with a proprietary smart hardware hub and the Casai app, but also a Google Home, smart lights and Chromecast-kitted televisions, as well as a lounge where guests can stay ahead of their check-in or after check-out.
And while the company’s vision is focused on Latin America now, its management team definitely sees the opportunity to create a global brand and business.
The founding team also includes a chief revenue officer, Alberto Ramos, who worked at McKinsey, and a chief growth officer, Daniel Hermann, who previously worked at the travel and lifestyle company, Selina. The head of design, Alexa Backal, used to work at GAIA Design, and its vice president of experience, Cristina Crespo, formerly ran WeWork’s international design studio.
“To successfully execute on this opportunity, a team needs to bring together expertise from consumer technology, design, hospitality, real estate and financial services to develop world-class operations needed to deliver on a first-class experience,” said Angela Strange, a general partner at Andreessen Horowitz, who’s taking a seat on the Casai board. “It was obvious when I met Nico and Maricarmen that they are operationally laser-focused and have uniquely blended expertise across verticals, with unique views on the consumer experience.”