SaffronStays Raises $3.5 Million in New Funding Round

Vacation rental and managed holiday-home platform SaffronStays has raised $3.5 million in a growth capital round led by Infinity Ventures, with participation from several prominent family offices. The round included a combination of fresh primary capital and a partial secondary sale by existing investor Sixth Sense Ventures.

The company said the new funding will be used to accelerate its next phase of growth, including expanding its footprint across both established and emerging leisure destinations, investing in technology and product innovation, enhancing guest experiences and strengthening its premium portfolio of managed homes across India.

SaffronStays has witnessed strong momentum across its key markets over the past two financial years. The company reported inventory growth of 70% in North India, 90% in South India and 200% in Goa, reinforcing its presence in some of the country’s fastest-growing staycation and holiday-home destinations.

Despite its rapid expansion, SaffronStays has maintained a disciplined approach to growth and profitability. The company has remained profitable for four consecutive years, underscoring its focus on building a sustainable hospitality business with long-term value creation.

“SaffronStays has always focused on building a sustainable and profitable hospitality platform rather than chasing growth at any cost,” said Devendra Parulekar, Co-founder, SaffronStays. “Over the past three years, we have expanded our portfolio by over 150%, scaled meaningfully across our focus markets and built a business where more than half of our revenue now comes from premium homes. Throughout this journey, we have remained profitable while continuing to invest in technology, operations and guest experience. This capital raise allows us to accelerate those investments and further strengthen our position in India’s managed holiday-home market.”

The company noted that its direct-to-consumer strategy continues to gain traction, with direct bookings accounting for nearly 70% of its business. It also highlighted the growing adoption of its recently launched mobile application and increasing demand for experiential travel offerings.

“We believe the holiday-home sector in India presents a significant long-term opportunity,” said Tejas Parulekar, Co-founder, SaffronStays. “Direct bookings today contribute nearly 70% of our business, our recently launched app is already gaining meaningful traction and demand for experiential stays continues to grow. Our vision is to build five regional business units, each capable of generating ₹100 crore in annual business, while maintaining a disciplined approach to profitability, operational excellence and customer satisfaction.”

SaffronStays has also expanded its focus on premium and experiential hospitality offerings, with a growing share of revenue coming from higher-value homes, curated experiences and destination-led stays that cater to evolving traveller preferences.

The latest funding comes at a time when India’s leisure travel and holiday-home market continues to witness robust growth, driven by rising demand for personalized, experience-led stays and alternative accommodation options.