As travel and tourism increase throughout Latin America, Casai, a company that blends the convenience of single-unit Airbnb rentals with the service standards of hotels, has secured $23 million in funding to broaden its operations across the region.

Initially, the company experienced setbacks due to the regional responses to the COVID-19 pandemic, mirroring the challenges faced by other businesses in the hospitality sector. However, Casai has since rebounded, achieving close to 90% occupancy across its portfolio of 200 managed units in and around Mexico City.

Casai was co-founded by Nico Barawid, the chief executive officer, who formerly led international expansion at Nova Credit and served as a consultant at BCG, and María del Carmen Herrerías Salazar, the chief operating officer, with a background at Grupo Presidente, one of Mexico’s leading hotel groups.

The two founders connected at a social gathering in Mexico City two years ago, sparking conversations about modernizing the hospitality industry. Their vision involved combining the flexibility of Airbnb’s individual unit rental model with the consistent quality and service expectations associated with established hotel chains.

“My goal was to create a product centered around the needs of the consumer,” Barawid explained. “I truly believed this offering should exist.”

Prior to the onset of the SARS-Cov-2 outbreak, Casai primarily relied on bookings through travel agencies such as HotelTonight and Expedia. Currently, the company benefits from a strong direct booking channel, a result of the efforts led by its chief technology officer, Andres Martinez, a former Google engineer.

This latest funding round was spearheaded by Andreessen Horowitz, with further contributions from the firm’s Cultural Leadership Fund, alongside Kaszek Ventures, Monashees Capital, Global Founders Capital, Liquid 2 Ventures, and a group of individual investors, including the founders of Nova Credit, Loft, Kavak and Runa.

In addition, Casai secured a debt facility of up to $25 million from TriplePoint Capital, increasing its total funding to $48 million in combined equity and debt.

The substantial investment is partly attributable to the company’s attractive offering, which provides guests with accommodations featuring a custom smart hardware hub and the Casai app, alongside amenities like a Google Home, smart lighting, and Chromecast-enabled televisions. Guests also have access to a lounge area for convenience before check-in or after check-out.

While the company’s current focus is on Latin America, the leadership team envisions the potential to establish a globally recognized brand and business.

The leadership team is completed by Alberto Ramos, chief revenue officer, previously with McKinsey, and Daniel Hermann, chief growth officer, formerly at the travel and lifestyle company Selina. Alexa Backal, head of design, brings experience from GAIA Design, and Cristina Crespo, vice president of experience, previously managed WeWork’s international design studio.

“Building a successful business in this space requires a team with expertise spanning consumer technology, design, hospitality, real estate, and financial services to create exceptional operations and deliver a superior guest experience,” noted Angela Strange, a general partner at Andreessen Horowitz, who will be joining the Casai board. “It was clear from my conversations with Nico and Maricarmen that they possess a strong operational focus and a unique blend of skills, along with a distinctive understanding of the consumer.”