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Luxstay raises $4.5mn in Bridge round

Released at: 14:04, 23/05/2019

Luxstay raises $4.5mn in Bridge round

Photo: Luxstay

Funding for home-sharing platform comes from two new South Korean investors - GS Home Shopping and Bon Angels.

by Ngoc Lan

Vietnamese home-sharing platform Luxstay has announced the completion of a Bridge fund-raising round with the participation of two new investors from South Korea - GS Home Shopping (GS Shop) and Bon Angels - worth $4.5 million.

This is one of the largest early stage funding rounds for a Vietnamese tech startup. Receiving capital from well-known international investors is an important step for Luxstay to fulfill its ambitions as well as expand its scope to other regions in the future.

Prior to this round, Luxstay had raised a total of some $6 million from CyberAgent Ventures, Genesia Ventures, and Nextrans, and two Vietnamese venture capital firms - ESP Capital and Founders Capital.

Luxstay is continuing to work with financial investors and strategic partners to deploy the next fund-raising round of Series A capital calls with a scale of $15-20 million. This is expected to be completed this year.

Launched in 2017, Luxstay focuses on developing domestic users and integrating with local partners in countries and territories with many tourists visiting Vietnam, such as South Korea and Japan. This also differentiates Luxstay from Airbnb, which is a global platform that does not have a focus on the Vietnamese market.

Luxstay is recording rapid growth, aiming at annual turnover of over $300 million by 2023 and a market share of about 30 per cent.

After Grab’s victory over Uber in Southeast Asia, many analysts said that Luxstay has a lot of potential to dominate the market in the most dynamic and developing region in the world.

Under the GS Corporation, one of the largest multidisciplinary investment groups in South Korea, GS Shop is currently the leading company in the country in the field of home shopping. It has also made its first steps into Vietnam, with the appearance of GS25.

Meanwhile, Bon Angels is known as a successful venture capital fund accompanying a series of famous South Korean startups like Woowa Brothers, Daily Hotels, and My Real Trip.

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