Cosi raises €20M for its ‘full-stack’ approach to short term rentals – TechCrunch

Kosi Group, A Berlin-based startup, is revealing € 20 million in new investment, offering an alternative to boutique hotels and managed short-stay apartments.

The round is backed by Vienna-based Sorvia, a leading real estate group in German-speaking countries. Existing investors Cherry Ventures, E.Wears, Creos Capital and Bremke followed suit with several individual investors. They are included, including their own founders of Flixbus, Travelpark, Comtrovo, and Cosi.

Cossey says it will use the new capital to accelerate international expansion in Europe, implement a new brand and soon launch a “new strategic business unit”.

Originally described as a technology-enabled or “full-stack” hospitality service that competes with well-run boutique hotels or traditional locally managed apartments, the company signs long-term leases with property owners Is, and then presents those apartments for “control”. Interior Design Experience. It claims to automate its processes digitally and, where possible, to maintain and maintain service quality on a scale of loyalty from initial contact.

Kosi CEO Christian Gasser told me that the startup is not only able to mitigate the epidemic – which has seen major restrictions in travel, including countries going into complete lockdown – but really thrive. This is because Kosi was able to tap “new demand channels” that do not rely on holiday travel or small business trips.

Described as “mid-stay” (guests who stay for 1 month or more), examples include people who come to a city and need a home for 1 or 2 months unless They do not find a long-term apartment that citizens need to move away. Shared apartments (perhaps less than a risk or work from home), or families that are building or renovating a house Those facing construction delays due to the epidemic.

“Thus, we were able to hit 90% occupancy and managed to operate our locations on a cash flow positive scale,” says Kosi CEO. “Lesson learned for us: Even when all of your demand channels dry up, there is a lot you can do if you focus on what you can control. We just introduced new demand channels Activated “.

Furthermore, he says the epidemic has changed demand preferences, noting that “large hotel bunkers” become less popular in the individual apartment style.

In the meantime, Cossey has also seen a “huge increase in supply”, with plenty of acquisition opportunities in the hotel space, specifically to reduce hotel assets. And ever since the demand for office space has contracted dramatically, the company has been receiving proposals to change office space for use as a mid-range residence.

“On the back of our strong Kovid performance, we have built a lot of trust among the real estate community and receive more and more offers,” Gasser says. “Supply prices have sometimes fallen dramatically depending on the city due to these factors”.

Until that time, Cossey currently has 750 units under contract, with more than 1,500 negotiations.

Adds Cosi’s CEO: “Now is the right time to double Cosi’s growth from a long-term perspective. When everyone is scared / surprised, you can win big if you have a clear plan. Our investors bought into the scheme, as we demonstrated that our business model is flexible and we have the ability to navigate the ship in good but bumpy waters.