Hospitality startup FreshUp raises $1.5 million from Lotus Global Investments Limited

In an order to expand its presence in south India, Chennai-based hospitality startup FreshUp has raised $1.5 million seed funding from Singapore-based Lotus Global Investments Limited. With the latest funding amount, the startup wants to expand its services to Guruvayur, Bengaluru, Chennai and Sabarimala.

Founded by Pothala Vinyl Reddy Laxmi Narasimha in 2016, Freshup offers micro stay services based on ‘pay as one uses’ model at poshtels to short-stay travellers. The startup aims to cater to travellers specifically shoppers who require few hours to freshen up.

The startup currently has its properties in Hyderabad and Tirupati, which also provide safe lockers and food services. Further, It has plans to roll-out Freshup services across the country within two years.

Commenting on the funding, Vinyl Reddy, CEO of FreshUp said, “The ecosystem does not offer much for travellers just seeking to freshen up for a couple of hours and is offering rooms at starting from Rs 249, according to the number of hours used has helped us rake in investments.”

The hospitality startup is also looking forward to partner with small-scale investors/entrepreneurs who are willing to invest in properties. Under the partnership, these entrepreneurs can invest 50% or more of the entire property cost and Freshup will hand-hold them for three years.

In an interview earlier Reddy said,  the upcoming properties in Chennai, Coimbatore and Tiruchy will be based on the metro-poshtel model, whereas Madurai, Velankanni, Kancheepuram, Tiruvannamalai and Shirdi will be based on the pilgrim centres model.

Despite having a low profit-margin, and occupancy in India, Hospitality sectors has attracted many entrepreneurs in the past. Companies such as Zostel, RoadHouse, RedDoorz, and others have successfully garnered and attracted funding due to their unique business model. However, It will be worth to watch if Freshup model is viable in long-run.

SEE ALSO: OnePlus 5T smartphone release date and price revealed. Here’s all you need to know

SEE ALSO: Grammarly Keyboard app now available for iOS device users

SEE ALSO: BookMyForex partners with Razorpay to enable faster payment service

SEE ALSO: Capital Float brings in Proprietor Loans for micro-entrepreneurs in India

SEE ALSO: Aequs Group invests undisclosed amount in SaaS Start-up LetsService.in

SEE ALSO: Little Black Book appoints Rohit Jain as Chief Technology Officer

SEE ALSO: BIADA to offer coworking space for startups in Bihar

SEE ALSO: SlicePay raises funding from Simile Venture Partners, Das Capital and others

SEE ALSO: Self-drive car and bike rental firm Drivezy raises Mn

SEE ALSO: Rooftop solar startup Oorjan secures seed funding led by Globevestor

SEE ALSO: Honor MediaPad T3 and MediaPad T3 10 tablets launched in India

SEE ALSO: Zefo raises .2 million in Series B funding from Sequoia and others

SEE ALSO: Alcatel U5 HD 4G Android smartphone launched in India for Rs 5,999

SEE ALSO: InnoVen appoints GE Capital’s Ashish Sharma as CEO for India

SEE ALSO: Xiaomi Mi Mix 2 to be launched in India next week on October 10

SEE ALSO: Yatra partners with Oyo to expand hotel inventory

SEE ALSO: Venture Catalysts invests in fintech startup HomeCapital

SEE ALSO: MobiKwik partners with IRCTC Rail Connect App

SEE ALSO: Revvx Hardware/IOT Accelerator partners with SVIC, extends leadership and consulting supports to hardware startups

Leave a comment