Japanese early stage investor Genesia Ventures has led a $2.5 million Pre-series A funding round in Vietnam’s Airbnb-like startup Luxstay. Founders Capital, Y1 Ventures and two other investors also joined the round.
In a statement, Luxstay said, the objective of this fundraising stage is to accelerate development and to successfully raise the next big round in 2018.
Founded by Vietnamese entrepreneur Steven Nguyen, Luxstay is an online platform which connects short-term rental home owners with tourists or business travelers. By using Luxstay, the owners can make money by renting out their house for a short period of time; the revenue might be much more attractive compared to traditional long-term rental.
Luxstay last year received its first investment from Genesia Ventures and ESP Capital.
“With the capital raised in this round, Luxstay will focus on technology and marketing development, building up more supporting programs for hosts who are business partners of Luxstay,” said the firm’s representative.
Vietnam’s homestay market is looking at a boom period over the next year or two, he predicts.
This year, Luxstay is looking at raising a larger investment of about $10–20 million in the next round to grow scale.
Genesia Ventures, which has invested in a number of Vietnamese and Thai startups, was set up in 2016 led by Soichi Tajima, former CEO of Cyberagent Ventures. The firm focuses on the seed and pre-series A stages across various sectors, including new economy, digital media, AI and robotics.