Luxstay has raised $4.5 million from South Korean retailer GS Shop and venture capitalist Bon Angels in its bridge round. A Luxstay representative said Wednesday that receiving funding from reputable international investors in this round is an important stepping stone for the enterprise to expand to other areas in the future.
GS Shop is a South Korean multimedia retailer as well as a global leader in TV home shopping. It also established a retail chain called GS25 in Vietnam in 2018.
Bon Angels Venture Partners is a South Korean venture capital firm investing in early-stage startups. It has invested in well known South Korean startups like Woowa Brothers, Daily Hotels, and My Real Trip.
Luxstay has targeted an annual turnover of over $300 million and 30 percent of Vietnam’s home-rental market share by 2023, the representative said.
It is also working with financial investors and strategic partners for the next funding round, a Series A round, which is expected to close in 2019, aiming to raise $15-20 million.
Prior to this investment, Luxstay had raised a total of around $6 million from CyberAgent Ventures (Japan), Genesia Ventures (Japan), ESP Capital (Vietnam), Founders Capital (Vietnam) and Nextrans (South Korea).
Launched in late 2016, Luxstay has a network of nearly 10,000 properties across the country. This is a short-term rental booking platform for apartments, villas and other homestay accommodations positioned in the mid and high-end segments of Vietnam’s real estate market.
It also offers property management and maintenance solutions to assist and save time for homeowners who want to participate in the home-sharing market through its system.
“In developed countries, home-sharing accounts for 10-20 percent of the home-rental market. This shows a huge opportunity for this industry in Vietnam, which is expected to reach $2-4 billion in 2025,” Luxstay said.