Casai

Casai, a hospitality startup founded in 2019, operated in the technology-driven, short-term rental market in Latin America. The company was established by Nico Barawid and Maricarmen Herrerías Salazar in Mexico City. The founding concept, conceived by Barawid, stemmed from his frustrations as a frequent business traveler with the inconsistent quality of Airbnb rentals compared to the higher cost of hotels. His background in fintech at Nova Credit, where he focused on international expansion, and his personal experience as an immigrant from the Philippines facing credit history challenges, informed his data-driven approach. He connected with Herrerías, a professional with a background in finance and hospitality at companies like Grupo Presidente, at a barbecue in Mexico City, and they combined their expertise to launch the company.

The company's business model focused on leasing apartments, often through revenue-sharing agreements with landlords, and then renting them to travelers for short-term stays. Casai targeted business and leisure travelers, often referred to as the "nomadic generation," in popular urban and tourist destinations across Mexico and Brazil. It differentiated itself by offering professionally managed, high-end apartments that blended the amenities of a boutique hotel with smart-home technology. Each unit was equipped with features like keyless check-in, Google Home, and Chromecast, all controllable through a proprietary mobile app that also provided concierge services and city guides. Revenue was generated from the rental of these units. At its peak, the company reported booking almost US$30 million in annualized revenue with operating margins around 25%.

Casai achieved significant milestones, including a landmark $48 million Series A funding round in October 2020, which was the largest ever for a Mexico-based company at the time. This funding, led by Andreessen Horowitz, included $23 million in equity and up to $25 million in debt financing. The capital injection fueled an aggressive expansion strategy, particularly in Brazil. This included the acquisition of the Brazilian operations of Q Apartments, rental startup Roomin, and smart-lock provider Loopkey. In mid-2022, facing financial pressures, Casai merged with its Brazilian competitor, Nomah, creating what was claimed to be the largest short-term rental company in Latin America with over 3,000 units. However, despite these efforts and having raised over $50 million in total, the company struggled to achieve profitability in a challenging venture capital climate. In July 2023, Casai ceased all operations, transferring its portfolio of approximately 2,000 apartments to other operators like Blueground and Oasis Collections.

Keywords: proptech, hospitality tech, short-term rentals, Latin America, smart apartments, vacation rentals, corporate housing, real estate technology, Nico Barawid, Maricarmen Herrerías Salazar, Andreessen Horowitz, Mexico City, Brazil expansion, venture capital, hospitality management, smart home technology, boutique apartments, travel tech, Casai shutdown, asset acquisition