Korean financial group led undisclosed Series C funding for home rental startup Travelio
A large Korean financial group led the undisclosed Series C funding round for the Indonesia-based home rental startup Travelio.
In a statement on Monday, Travelio said that despite the difficult funding environment in Southeast Asia, the company had been successful in raising its Series C up-round from investors.
It included participation from fresh investors like Korea’s DAOL Ventures (formerly KTB), Thailand Conglomerate PTTOR and 500 Global’s Orzon Ventures, and Taiwan’s Appworks.
Existing investor Pavilion Capital from Temasek took part in the round as well.
The statement claims that a portion of the new funding will be used to introduce a new rent-to-own vertical.
“We are excited to launch this new initiative as it will solve the low home ownership issue for middle-class millennials, which makes up the majority of our tenants,
“This way, we won’t just be a temporary solution for them for a couple of years but instead for their lifetime,” said Christina Suriadjaja, Co-Founder and Chief Strategy Officer of Travelio.
An online startup for short-term home rentals, Travelio is based in Jakarta.
The vacancy rate for apartments in Indonesia has remained startlingly high at more than 50% since 2019. The average annual primary apartment unit sales rate, which ranges from 87 to 89 percent, is still quite high.
In addition to being viewed as an affordable rental option for tenants looking to rent apartments for short- to long-term periods, Travelio has observed that its business model is successful in providing high rental income to apartment owners who had not seen sufficient return before Travelio’s service.
More than 15,000 properties are solely managed by Travelio’s platform.
There are 12 cities where it is currently active: Jakarta, Tangerang, Bekasi, Bogor, Depok, Bandung, Surabaya, Semarang, Karawang, Makassar, Yogyakarta, and Medan. This year, it intends to spread to additional cities.
The only online and transactional platform in Indonesia that enables tenants to pay monthly for a yearly rental is Travelio, it should be noted.
