Mumbai-based hospitality platform SaffronStays has raised $3.5 million (around ₹29 crore) through a mix of primary transactions and a secondary stake sale. The funding round was led by Infinity Ventures alongside prominent family offices, with existing investor Sixth Sense Ventures partially exiting. The startup plans to use the capital to expand its managed holiday homes and villas across India and enhance its technology stack, the company confirmed to inc42.com.
Founded in 2015 by Devendra and Tejas Parulekar, SaffronStays curates and manages hospitality operations, reservations, branding, and marketing for private vacation homes. Sixth Sense Ventures had previously backed the startup in its $2 million seed round. Co-founder Devendra Parulekar said the company has remained profitable for four consecutive years while growing its property portfolio by over 150% in the last three years. The fresh capital will accelerate investments in technology, operations, and guest experience.
SaffronStays operates in India's managed holiday-home market, which is seeing increased demand as travelers seek curated vacation experiences. The startup's focus on profitability and technology-driven growth distinguishes it from peers that prioritize rapid expansion. Its direct booking channel currently accounts for nearly 70% of business, underscoring its strong customer engagement. The new funding round positions SaffronStays to capitalize on emerging leisure destinations and scale its portfolio amid growing competition.
The company aims to leverage the $3.5 million infusion to strengthen its market position and expand into new leisure locations across India. SaffronStays has maintained profitability while scaling, a notable achievement in the hospitality sector. The next milestone will be the expansion of its managed holiday home portfolio, which has grown significantly over the past three years, according to inc42.com.