Peruvian start-up Wynwood House raises $7 million
Peruvian start-up Wynwood House just closed a $7 million seed round between equity and debt. The round was led by Chilean company FEN Ventures and Salvadoran company Innogen Venture Capital.
Wynwood House is a Peru-based apartment rental startup that promises to be a hybrid between “the comfort of traveling to a friend’s house and a 5-star hotel”. Co-founded at the end of 2019 by Ignacio MasiasA former Mckinsey executive from a family linked for generations to tourism, the Peruvian startup was able to identify a market opportunity amid the strong growth in demand for apartments on Airbnb in Latin America: no brand guaranteed quality spaces.
Today, Wynwood House manages more than 850 rental units (apartments rented under its brand) in four Latin American countries (Peru, Colombia, Mexico and Panama). Moreover, it has quadrupled its growth in the last twelve months and exceeded 10,000 customers per month.
The apartment rental startup plans to grow from 850 units to 2,500 units next year. The new funds will be used to multiply its growth fivefold and expand beyond Latin America. Wynwood House also plans to rent units in Chile (Santiago) and Spain (Madrid) in 2023. It is also evaluating the opening of units in the United States (Miami) by the end of next year or in 2024.
They also launched a B2B segment called “Casa Wynwood”, which is a mix between a boutique hotel and a clubhouse. This segment represents more than 20% of its reservations, which considers longer stays. Casa Wynwood has two units located in Mexico City (Roma Norte) and Lima (Barranco).
“We help real estate investors monetize their properties. We take care of everything: from the design of the apartments, the furnishing, to the cleaning and the guest experience. The owner of the apartment can obtain a return on average between 20 and 30% higher than what he would obtain on the traditional rental market, without having to deal with the operation”.
Ignacio Masías, CEO and co-founder of Wynwood House
Wynwood House has managed to maintain an average occupancy rate of 80% over the past year and a half in the four countries where it operates. Regarding the recovery of foreign tourism to pre-pandemic levels, in Mexico and Colombia a full recovery is noticeable, while in Peru they are still between 60% and 65% of 2019 levels, said Masias in Forbes.