Accommodation Consignment Operation Startup Handiz Secures 12 Billion KRW Series A Investment

[Asia Economy Reporter Donghyun Choi] Handyz, a startup specializing in entrusted accommodation operation services, announced on the 1st that it has secured 12 billion KRW in Series A funding.

This investment round included participation from existing investors Spring Camp and DSC Investment, as well as new investors Hana Securities, Feynman Asset Management, and E& Investment. Handyz plans to accelerate both quantitative and qualitative enhancements of its services using the investment funds.

Founded in 2016, Handyz is the leading accommodation service startup in South Korea. It offers various accommodation services through multiple brands such as the one-room style accommodation brand ‘Urban Stay’ and the premium brand ‘Le Collective.’ Notably, all rooms are equipped with cooking, heating, and laundry facilities, attracting significant interest from the MZ generation (Millennials + Generation Z) who seek ‘workations’?spending time indoors without outdoor activities post-pandemic, combining work and rest.

The background of this investment is attributed to Handyz’s rapid growth. As of August this year, Handyz operates over 2,000 rooms nationwide, with approximately 80,000 customers staying monthly. This resulted in sales of 14 billion KRW in the first half of this year alone. Currently, Handyz has secured entrusted operation contracts for about 20,000 rooms by the end of 2024. With travel demand recovering quickly and accommodation needs increasing, Handyz is expected to grow even more rapidly.

Handyz plans to expand its services following this investment. Along with quantitative and qualitative expansion of its currently operated accommodation facility brands, it is preparing to expand into new accommodation categories such as hotels and pool villas. Additionally, new business models like pet hotels are also being considered.

Lee Yonghyun, team leader at DSC Investment who led this investment round, said, “Handyz meets diverse accommodation needs based on its monopolistic market share in residential lodging facilities and outstanding IT development capabilities,” adding, “Expectations are high for expansion beyond the residential lodging market, where it already holds overwhelming recognition and market share, into various related industries.”

Seungho Jung, CEO of Handyz, stated, “We are pleased that Handyz’s vision has been recognized by leading domestic investors,” and added, “Handyz will create a super-gap through partnerships with major corporations and the mobile app to be launched early next year.”

This content was produced with the assistance of AI translation services.