H2O Prepping For Olympics Season, Raises $7M from Its Series B Funding
Japan-based vacation rental management company H2O, has closed $7 million in additional funding from its latest round
Fremont, CA: H2O, the Japanese vacation rental management, has closed $7 million in additional funding round. Short for Hospitality 2.0, H2O has raised total funding worth $18 million to date.
H2O commence its operations effectively in 2015 in partnership with Wahome, a South Korean cleaning venture, before the acquisition of various other Japanese companies to form H2O. At present, the platform hosts more than 5,000 rooms and has plans to extend.
The hospitality company also offers property management solutions that assist owners in managing operations, housekeeping, and bookings all in one platform. The unified solutions platform helps property managers control costs and handle the overheads.
Hoping to fill the gap that exists in the accommodation market leading to the 2020 Olympics, CEO John Lee believes that Japan is ripe for investment at present as the existing shortage, as well as the massive domestic and international tourism, is on a hike.
The company’s total revenue has doubled since the third quarter of 2018, and with the latest funding, H2O has brought in investors like Samsung, Stonebridge Ventures, and Shinhan Capital.
Eric Kim, senior investment manager at Samsung, said, “We’re pleased to be part of the fastest-growing hospitality company in Japan. H2O has already proven product-market fit within Japan, and we expect them to continue to thrive as they expand outside of major cities.”
H2O properties mostly abide the Japan’s 2019 minpaku law, which is designed to monitor and manage the unregulated short-term rental market. Lee has commented that the new regulation has assisted new players in stepping into the market, especially property owners.
The hospitality market in Japan displays a wide range of potential for growth across the industry. The boutique hotel industry is still increasing, and many new brands have attempted to buck from the image of corporate hotels.
Airbnb is also in line for making its debut into the region. Though the platform struggled with minpaku law, the platform’s ability to arrange to housing for visitors of The Rugby World Cup has added plus points to its existing market value.
With the Olympics season soon to come, the scope for accommodations is on the rise, Japanese short-term rental providers are expecting to make most of the opportunity.
