Vista Rooms Raises INR 10 Cr In Funding Round Led By DSG Consumer Partners The platform plans to scale its network of properties to over 1,000, launch new locations, build out the team, improve technology, and further brand awareness within the next 18-24 months

Mumbai-based hospitality startup Vista Rooms on Wednesday announced to have raised INR 10 crore in a funding round led by DSG Consumer Partners, with participation from investors including CA Holdings, Artha India Ventures, and Anand Ladsariya.

The luxury villa rental brand manages privately owned luxury properties in holiday destinations, taking care of the hassles of hosting and generating revenue for homeowners on one hand while offering a unique stay experience to travelers on the other.

"We have seen an exciting secular shift in traveler behavior: homestays are becoming the vacation of choice, encouraged by WFH and online school. As people become comfortable with the concept of staycations, we have seen our customers return for more bookings in new locations and homes," said Ankita Sheth, co-founder, Vista Rooms.

By facilitating the stay of group travelers in luxury villas, the company addresses a market challenge for both travelers and homeowners. The platform caters to family getaways, friends' reunions, and corporate off-sites.

"Our goal is to allow people to escape - to stay, live and work from the most beautiful homes. We are currently at a major growth stage, and the funds will enable us to accelerate our pace. We will scale our network of properties to over 1000 within the next 18-24 months. The growth enabled by the funding will be fourfold - launching new locations, building out the team, improving technology, and furthering brand awareness," Sheth added while speaking on the avenues where the funds will be allocated.

According to the statement released, the establishment currently manages a portfolio with assets under management over $500 million across 400 properties.

"Vista is the category leader in the vacation rental segment in India, achieving this distinction with very little capital raised. The team has also shown resilience through the pandemic and has come out a lot stronger. The company has a clear focus on curating and delivering excellent guest experiences which is reflected in their direct business and repeat guests. The vacation rental segment addresses a clear pain point for both travelers and homeowners. This segment is poised for massive growth and Vista is well-positioned to capitalize on this with its market leadership," stated Deepak Shahdadpuri, managing director, DSG Consumer Partners.

Vista Rooms has seen occupancy rates 50 per cent higher than what they were pre-pandemic. Customers have been very loyal with over 30 per cent of the bookings coming from repeats and referrals. While their network is strong in holiday destinations around Mumbai, Delhi, Bangalore, and Goa, DSG's backing will enable it to anchor deeper into each region, and offer even more options to travelers, as well as strengthen its hospitality team to create delightful experiences, the company said.

"As a homeowner, I have seen the team's commitment towards property management and I am confident of their growth in this segment. Moreover, with the Work from Anywhere culture spreading now, I think we have got the timing in our favor too," shared Rajeev Mehrotra, director, CA Holding, while speaking on his decision to invest.

Mehrotra who is a homeowner, whose property is managed by Vista Rooms took the partnership further and turned investor recently.

Founded in 2015, the startup has previously raised over INR 5 crore from investors Rajan Anandan, Artha India Ventures, Singapore Angel Network, and Singularity Ventures.

While COVID-19 hit the travel industry severely, with easing lockdowns, travelers have been looking for private staycations at drivable distances in lieu of the more risky options of flights and hotels. As a result, the holiday home rentals market has bounced back with fervor, as evinced by the Airbnb IPO.