5 November 2024, Tue |
2:40 PM
Silkhaus (www.silkhaus.co), a UAE-based startup, is betting big on technology and the growing demand for short-term rentals (STR) to disrupt and transform the region’s real estate sector. The disruptive prop-tech startup has received USD 7.75 million in seed funding from top global venture capitalists and entrepreneurs, making it one of the largest seed rounds in the MENA region’s history.
Aahan Bhojani, Founder and CEO of Silkhaus, said: “We are witnessing a significant increase in alternative accommodation and short-term rentals. However, the management of short-term rentals is highly fragmented and largely offline. Property owners lack the technology and know-how to deliver a world-class and standardised experience.”
“We are building the operating system for property owners – large or small – to operate high quality short-term rentals and deliver memorable guest experiences. With the backing of our global investors, we are excited to build Silkhaus into a global category-leader.”
As a result of progressive regulations and visa reforms that are attracting top global talent and companies to its shores, demand for high-quality STRs has far outstripped supply. The growing trend of ‘global nomads,’ or professionals who can work from anywhere and need transparent, yet flexible, tenancy contracts, has also fueled demand.
Silkhaus, founded in 2021 by Aahan Bhojani and Ashmin Varma, has grown more than tenfold in the last year while remaining in stealth mode. Aahan, a Harvard Business School and Yale College graduate, has previously held positions in management consulting, investment banking, and product management that required extensive travel. Aahan founded Silkhaus to reimagine accommodation experiences for medium and long-stay travel across high-growth emerging markets in response to changing leisure and business travel preferences.
Silkhaus has identified a $13 billion TAM across MENA, South Asia, and Southeast Asia to enable asset owners to capitalize on opportunities. STRs allow property investors to maximize returns on their investments in a hot market without being locked into long-term tenancy contracts. While online platforms have aggregated demand for STRs, supply remains hyper-fragmented and largely offline in nature.
Silkhaus provides a technology-powered best-in-class platform for anyone to operate high-quality short-term rentals, whether they are individual apartment owners, institutional investors, or established operators, bringing trust, consistency, and transparency to the UAE’s real estate sector. Silkhaus optimizes revenue and streamlines operations for property owners as part of its mission to make short-term rentals more accessible to diverse audiences, allowing them to list multiple or single units on the platform with an average revenue yield increase of 20 – 40%. Whether traveling for business or pleasure, guests can easily access high-quality, well-maintained properties, elevating their experience.
Silkhaus’ investors include leading global venture capital funds, technology funds, real estate funds, and the strongest entrepreneurs across the emerging markets. Global and regional investors joining this round include Nuwa Capital, Nordstar, Global Founders Capital, Yuj Ventures, Whiteboard Capital, and VentureSouq. International family offices, business leaders, and several global prop-tech entrepreneurs have also joined this round.
Nitin Reen, Partner at Nuwa Capital said: “Our investment in Silkhaus, alongside global technology and strategic investors, reflects our belief in the future of accommodation solutions and Silkhaus’ ability to operationalise and scale the affinity that customers will expect of the Silkhaus brand. Aahan and Ashmin have differentiated themselves in the right ways with an early emphasis on solid unit economics, market leading NPS, and a value add for all of their stakeholders, including guests and property owners.”
Ole Ruch, Managing Partner at Nordstar said: “We are excited to see Silkhaus emerge as the leading platform for short-term rentals across Asia, and particularly excited to partner with Aahan and his team who in short time have proven their ability to disrupt two large and fragmented industries: real estate and hospitality. In Silkhaus we found a product that is loved and recognized by property owners, travellers and enterprises alike, and are tapping into the rapid growth of short-term rentals in emerging markets.”
Silkhaus offers high-quality lodging options near central business districts and leisure destinations. Multinational corporations also choose Silkhaus for qualified long-term employees. Silkhaus has focused on assembling the best talent from the global start-up ecosystem, attracting leaders from Microsoft, Airbnb, Deliveroo, Careem, Talabat, and other global tech-enabled businesses to seamlessly connect supply and demand. Women make up nearly 40% of the Silkhaus team, which includes employees from 12 different countries. As it focuses on growing global supply on its platform to keep up with demand, Silkhaus anticipates its market opportunity to grow from $13 billion (current) to $18 billion by 2026, across MENA, South Asia and Southeast Asia.
