MetroResidences set for Asian expansion with S$4m investment from Rakuten

The Series A round will be used to fund its expansion to Asia’s key business cities. Launched 2.5 years ago, MetroResidences makes corporate stays more affordable while upholding a consistent experience for guests. 
The company focuses on quality and digital convenience. 
Each apartment must pass a stringent audit for furniture, neighbourhood, amenities, building condition and location. 
Guests book online and use a smartphone app to communicate with MetroResidences guest services during their stay. 
Within 15 months of receiving S$1 million from a group of investors led by 500 Startups in December 2015, MetroResidences’ rental revenue has grown over 400 per cent. 
The current team sits at 25 and the business has managed to maintain profitability over this period. 
More than 115,000 room nights have been booked by 800 corporate clients through the platform. 
MetroResidences’ next step is heading towards opening offices in Tokyo, Japan and Hong Kong.
Masatada Kobayashi, co-founder and managing executive officer at Rakuten Inc, said the company was excited about the potential for MetroResidences to grow in the expanding Asia-Pacific business traveller market. 
“With their technical expertise and understanding of the Asian travel market, the MetroResidences team is on track to develop a strong market share with their unique commitment to sharing economy accommodation,” he said.
A report from McKinsey & Company on Asian business travel indicates that Asia accounts for more than a third of US$1 trillion (Bt35 trillion) in annual spending, that the market is growing and that 40 per cent of these business travellers would consider using sharing economy accommodation.
James Chua, founding partner and Singapore head, said there is a lot of growth potential for business travel in Asia-Pacific as the region alone comprises 38 per cent of global business travel. 
“MetroResidences aims to offer the right balance between price-quality in corporate accommodation and offers a consistent MetroResidences experience in every apartment our guests stay in. 
“We will be heavily investing in properties technology that allows HR managers a faster way to book 
 their corporate stays and optimising our MetroConnect in-house guest app, which connects our guests to supporting services.”
The founders’ vision is to create the go-to platform where companies can book their corporate accommodation. 
MetroResidences will pave the way for disruption in the corporate travel space in the upcoming months.