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.

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Abhishek is a startup ninja who has spent his time meeting entrepreneurs and helping them tell their stories efficiently. You can find him biking around in his past time. Based out of New Delhi, he is a geek at heart, gadgets are his toys and internet technology is what keeps him going. Email: