- SaffronStays raises $3.5 million in growth funding round.
- Inventory grew 200 percent in Goa over two years.
- Direct bookings contribute nearly 70 percent of revenue.
The round included fresh primary capital and a partial secondary sale by existing investor Sixth Sense Ventures, according to the company. The company said it stayed profitable for the past four consecutive years while growing its portfolio by more than 150 percent over three years.
SaffronStays, founded by Devendra and Tejas Parulekar, operates a network of professionally managed private homes and villas across India's leisure destinations.
The growth numbers across its key markets tell a clear story. Inventory grew 70 percent in North India, 90 percent in South India, and 200 percent in Goa over the last two financial years. More than half of the company's revenue came from premium homes, while direct bookings accounted for nearly 70 percent of total business. The company recently launched a mobile app that it said is already gaining traction among users.
"SaffronStays focused on building a sustainable and profitable hospitality platform rather than chasing growth at any cost,” said Devendra Parulekar, SaffronStays co-founder. “Over the past three years, we expanded our portfolio by over 150 percent, scaled meaningfully across our focus markets, and built a business where more than half of our revenue now comes from premium homes.”
Tejas Parulekar, SaffronStays co-founder, said the company's vision is to build five regional business units, each capable of generating $10.6 million in annual business.
“Direct bookings, the new app and growing demand for experiential stays are all moving in the right direction. The goal is to keep profitability intact while scaling up,” she said.
SaffronStays said the managed holiday home market in India is still at an early stage, with more travelers opting for holiday homes and other alternative accommodation options.
A recent CBRE report found that Indian household spending is shifting toward experiences over physical goods, with Gen Z driving growth in travel and lifestyle hotels.
