US: Tech-enabled short-term apartment rental startup Frontdesk, which aims to transform the way people experience travel, has announced it has completed a $6.8 million Series A raise in a combination of debt and equity.
The financing comes on the heels of the company’s $2.75 million bridge round, raised in summer 2019.
Frontdesk co-founder and chief executive officer, Kyle Weatherly, said: “Before the coronavirus crisis, we always felt that we had the most supportive investors imaginable. Now we are absolutely certain of it.
“Not only did they make good on their initial commitment, but they increased it by almost $3 million. This provides us the
capital to not only survive the crisis but it will also allow us to accelerate our growth again when travel rebounds,” he added.
Having been founded in 2017, Frontdesk’s focus on sustainable growth is another key contributor in helping the company weather the coronavirus crisis.
The company is not immune to the effects of the virus, having recently laid off 35 of its 241 employees; however, Frontdesk already sees positive indicators of increased travel demand. It hopes to rehire those employees, in addition to dozens of new employees, this summer.
Co-founder and chief product officer, Jesse DePinto, said: “We are opening a new chapter of Frontdesk history. We may have been the underdog before, but now Frontdesk is positioned to be an industry leader.
“We would not be here today if it wasn’t for the dedication of our employees, the faith of our investors, and the support of our real estate partners,” he added.
Frontdesk currently operates in 28 cities with over 500 fully-serviced apartment suites. Unlike vacation rentals, Frontdesk manages the entire guest experience from end to end, from their in-house technology stack to the in-house cleaning operation.
The firm proudly boasts an average of 4.8 out of 5.0 guest review score on its 60,000+ stays to date, ranging in length from one-night to six-month stays.
Its spaces are on average three times the size of a typical hotel room, offering more space and comfort to its guests.
One Frontdesk guest, Anna, said in a press release: “This place was amazing. I’m still impressed with how big it was.
She added: “The location was perfect, it was close to everything we needed. Communication was spot on and available at any time you needed it and we would go back in a heartbeat!”
For more information, visit the Frontdesk website here.