Habyt, headquartered in Berlin and specializing in flexible housing solutions, has revealed the successful closure of a $42 million Series C funding round, spearheaded by Korelya Capital and Deutsche Invest.
Exor Ventures, Endeavor Catalyst, and Habyt’s existing shareholders, including P101 and ITALIA 500 – Azimut, also participated in this funding round.
Habyt plans to utilize these funds to sustain its global expansion, further solidify its growing market presence, and enhance its ESG (Environmental, Social, and Governance) initiatives. The startup is committed to introducing new technological updates to its platform in the near future, thereby enhancing the housing experience for its customers.
Luca Bovone, the Founder and CEO of Habyt, expressed his enthusiasm, stating, “Despite a decline in Series C funding rounds this year, we’ve experienced exponential growth and successfully secured significant Series C funding from both existing and new investors.”
Earlier this year, Habyt made a strategic move by acquiring Common Living, a prominent player in the North American shared housing market. This acquisition follows Habyt’s earlier purchase of the Singapore-based co-living platform Hmlet in 2022.
In the current year, Habyt has expanded its business to encompass 30,000 housing units across more than 50 cities spanning three continents. Additionally, the startup has achieved a notable 40 percent increase in net revenue and reports profitability in most of its key geographical markets. It has set its sights on achieving group-level profitability by early next year.
Contributing to Addressing the Housing Crisis
Worldwide, young individuals face formidable challenges in securing suitable housing, whether it’s for short-term or long-term needs. The demand for housing consistently surpasses its availability, while escalating mortgage interest rates further exacerbate the housing accessibility dilemma for this demographic.
Habyt is on a mission to revolutionize the rental experience for tenants by harnessing digital technology to streamline and standardize the housing process. The startup removes unnecessary hurdles in the housing acquisition journey, including laborious paperwork, and offers flexible living arrangements catering to the needs of travelers, locals, and professionals.
Renters have the freedom to opt for shared or private living spaces, aligning with their personal preferences and financial circumstances. Every Habyt unit is thoughtfully furnished to simplify the moving process.
To begin their housing journey, prospective tenants initiate an online application to secure their desired lodging. The dedicated sales team promptly connects with applicants to finalize reservation details.
Subsequently, tenants proceed to sign all requisite documents and select their move-in date, with Habyt providing clear instructions for a seamless move-in process. Importantly, all these crucial steps are conveniently completed online.
Establishing a Strong Presence in Vital Global Markets
Investors who participated in the startup’s Series C fundraising are expressing their confidence in the startup’s ability to continue expanding with its innovative solutions.
Franco Danesi, a partner at Korelya Capital and a newly appointed member of Habyt’s board of directors, remarks, “Habyt is addressing the ever-growing global challenge of housing access with a digital-first solution that appeals to both young local families and mobile professionals. It also offers real estate developers and investors an innovative and compelling product.”
Danesi further adds, “What truly excites me is their unparalleled global presence, with a significant footprint in the US, Europe, and Asia.”
Armin Weiland, Managing Director at Deutsche Invest and another member of Habyt’s board, highlights the startup’s capacity to thrive in a “challenging” environment.
“With the current momentum and a remarkable increase in net revenue, our next major milestone is achieving profitability in 2024. We will maintain a continuous focus on unit economics and the profitability of each asset,” Weiland concludes.