Habyt, a Berlin-based startup, has secured €40 million ($42 million) in a Series C funding round to expand its Airbnb-style platform for longer-term stays and flexible living arrangements. The funding round is significant, considering the current constraints in startup funding and the recovery of the travel industry due to the COVID-19 pandemic.
Key Takeaway
Habyt secures $42 million in funding for its long-stay accommodation platform, aiming to cater to the growing demand for flexible living arrangements. The company’s tech-driven approach, profitable unit economics, and expansion plans position it as a significant player in the co-living market.
Meeting the Demand for Flexible Living
Habyt aims to cater to individuals and families seeking to stay in cities for an extended period, typically between six and nine months. This target audience includes digital nomads and those who benefit from flexible work policies. With the rise of remote work and the need for more adaptable living arrangements, Habyt offers a digital platform that connects hosts and guests, providing a wide range of fully furnished apartments and rooms in over 50 cities.
The company has experienced rapid growth, expanding its inventory from 5,000 units in 18 cities to 30,000 units in 50 cities over the past year. Habyt’s success can also be attributed to its focus on unit economics and profitability. Several key markets, including Berlin, Madrid, Hong Kong, and Singapore, are already profitable, and Habyt expects to achieve full-company profitability by 2024.
A Tech-Driven, End-to-End Solution
While Habyt operates in the housing and physical world like Airbnb, it distinguishes itself by offering a tech-driven end-to-end solution. Unlike traditional processes for renting accommodations, Habyt’s platform allows users to search, view, and transact online. Virtual viewings are supported, and all necessary contracts, documents, and identity verifications are handled digitally.
“We are the only player in the co-living market that manages everything, end to end, via a tech platform,” said Luca Bovone, CEO and founder of Habyt.
Expanding and Enhancing the Platform
The latest funding injection will be used to further enhance Habyt’s tech platform and expand its business across Europe, Asia, and North America. The company plans to continue sourcing inventory from both private homeowners and institutional property owners to offer a consistent experience to its users.
The Series C funding round was led by Korelya Capital and Deutsche Invest, with participation from new investors Exor Ventures and Endeavor Catalyst, as well as existing backers such as P101, Vorwerk Ventures, and Kinnevik.
