On Wednesday, serviced apartments provider, thesqua.re, announced it has closed an investment round of $2 million from Crowd2Fund and OakNorth Bank.
thesqua.re, which was previously known as House of Modern Living or MoLi, was founded in 2009 and has grown profitably at 80% CAGR to cross $10 million revenue in 2015. The company targets corporate accommodations for travellers staying more than a few days. It currently manages accommodations in a growing number of cities including London, Paris, New York, Singapore, and Amsterdam.
The funding supports thesqua.re expansion to 500 apartments in Central London over the next two years, growth of its digital platform and the aim to open up offices in New York.
Chris Hancock, CEO of Crowd2Fund, stated:
“Crowd lending is such an exciting and fast-growing industry. We loved working with Sid and the team at thesqua.re, they are an excellent example of the innovative, British businesses we helped fund on the platform and a fantastic way to provide our investors with a good return on their investments.”
The campaign closed with 17 high profile investors, making thesqua.re the first UK serviced apartments provider to secure investment through crowdfunding. Founder of the company, Sid Narang, explained:
“Crowdfunding gave us an opportunity to reach out to investors who were involved in the latest tech and industry trends. We specifically chose to raise on Crowd2Fund due to them understanding our business and the only crowdfunding platform to allow us to raise a loan in this way. This is an exciting time for us at thesqua.re as we build a global business that aims to use operational excellence, real estate know how, and a silicon valley technology mindset to bring an exception 4 star accommodation experience to our growing corporate customer base.”
Last month, thesqua.re received the Breakthrough Award by ASAP, The Association of Serviced Apartment Providers, which alongside the funding shows how the company is disrupting the industry with innovative technologies and goals.
thesqua.re revealed it aims to manage 500-1000 apartments to bring on more FTSE 100 customer accounts in the next three to five years. The company is currently developing a digital concierge app, which will be combined with the online platform and notably enable customers to manage business travel efficiently.
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