US-based short-term apartment provider Domio has collected $50m in a series B round featuring SoftBank Capital NY, a venture capital subsidiary of internet and telecommunications conglomerate SoftBank, TechCrunch reported yesterday.
Venture capital firm GGV Capital led the round, which included Eldridge Industries, 3L Capital, Tribeca Venture Partners, Tenaya Capital and Upper90. The funding was secured in August alongside $50m in debt financing led by Upper90 but only revealed this week.
Founded in 2016, Domio leases recently built properties and kits them out for short-term accommodation before renting them out to users. The apartments feature hotel-style amenities and are aimed at millennial-aged groups of friends or families.
The company relies on an algorithm that takes customer preference into account as well as external factors such as weather patterns and economic indicators to identify the most beneficial markets for expansion. It has opened spaces in 12 US cities to date.
Domio is also considering bolstering a retail business that allows guests to purchase furniture or artwork in an apartment that can then be used in their own home.
To date, Domio has leased properties from developers who may have previously marketed them as condominiums, but it has seen an increased interest from real estate investors who purchase properties having already decided to partner the company.
The series B funding will allow Domio to expand its presence to 25 markets worldwide, while the debt financing will support the signing of new leases and furnishing of properties.
The company raised $12m in an October 2018 series A round led by Tribeca Venture Partners that included SoftBank Capital NY and existing investor Loric Ventures. It had secured $4m in seed capital and $1m of debt financing as of January 2018.
