Safara Secures $14 Million in Funding and Acquires Skipper to Empower Independent Hotels

The entrepreneurial spirit has been a constant driving force in Doug Schuessler’s life, a passion that ignited in his youth and propelled him through the launch of two startups. This innate drive led him to the vibrant tech hub of San Francisco, where he sought firsthand experience within a "real rocket shop" by taking a position at Square. His journey then took him to the helm of revenue operations as Chief Revenue Officer at Resy, the acclaimed restaurant booking platform. Following this impactful tenure, Schuessler felt the familiar pull of entrepreneurship, embarking on his path as a founder once again.

The pivotal moment that redirected Schuessler’s focus towards the hospitality sector came after Resy’s acquisition by American Express. This strategic shift allowed him to delve deeper into the intricacies of the hospitality technology industry, a deep dive that quickly captivated his attention. He found himself particularly drawn to the challenges and opportunities within the hotel segment. "Independent hotels really need the help," Schuessler stated unequivocally to TechCrunch, underscoring a significant market need he perceived.

His observations revealed a dramatic shift in the hotel landscape over the decades. Schuessler recalled a time when the vast majority of hotels across the nation operated as independent entities. However, a sustained wave of acquisitions by major hotel chains has steadily consolidated the market, leaving the remaining independent properties facing increasingly formidable competition. This consolidation, he believes, has created a significant disadvantage for these smaller, often family-owned businesses.

It was this identified gap and the potential to create a tangible solution that spurred Schuessler and his co-founder, Cody Rose, a fellow alumnus of Resy, to establish Safara. The company’s mission is ambitious yet clear: to provide a comprehensive booking platform that grants customers access to virtually every hotel across the globe, irrespective of whether they are part of a large chain or an independent establishment. This inclusive approach aims to level the playing field for all types of accommodations.

The Safara platform curates its extensive hotel listings through a sophisticated blend of consumer data analysis and valuable community-sourced recommendations. This dual approach ensures that the platform offers both breadth and depth, catering to diverse traveler preferences. Complementing its booking functionality, Safara has introduced a compelling rewards program designed to incentivize bookings made through its platform. This program offers users cash back, which can then be applied towards future travel, fostering customer loyalty and encouraging repeat engagement.

Crucially, for independent hotels, Safara offers a distinct advantage. Hotels that integrate with Skipper, the recently acquired online booking engine, can leverage Safara’s platform commission-free. While technically any hotel can connect to Safara, this commission-free offering is specifically tailored to alleviate financial burdens for independent operators. Schuessler elaborated on this integration, likening it to "another direct channel alongside their website." He further explained the strategic synergy: "We then connect these two products to elevate the guest experience by enabling direct web guests who book directly on the hotel’s site to manage that reservation in the Safara app." This seamless integration aims to enhance both the hotel’s direct booking capabilities and the guest’s post-booking management experience.

In a significant development, Safara announced today the closure of an undisclosed funding round, spearheaded by prominent venture capital firms Sequoia and Defy.vc. This investment round is further bolstered by Safara’s strategic acquisition of Skipper, a well-established online booking engine specifically designed for independent hotels. With this latest infusion of capital, Safara has now amassed a total of $14 million in funding, positioning it for accelerated growth and expansion.

The union of Safara and Skipper was facilitated by a mutual investor who recognized the strong alignment in the companies’ respective visions for the hospitality industry. The co-founders of Skipper will be integrating into the Safara team, contributing their expertise and insights to the combined entity. Schuessler revealed that initial discussions regarding a potential collaboration occurred earlier in the year, but the timing was not yet optimal. "But the stars eventually aligned," he remarked, emphasizing the serendipitous nature of the eventual partnership. He further articulated the strategic rationale behind the acquisition: "Both companies have a much better chance at achieving the shared vision together than they do apart." This sentiment underscores a commitment to collective success and a belief in the power of synergy.

Safara distinguishes itself in the crowded marketplace by adopting a dual-pronged strategy: providing robust software solutions for hotels while simultaneously developing valuable products that cater directly to the consumer. This holistic approach aims to address the needs of both sides of the hospitality transaction. "The magic is going to come in 2025 when we connect these two products more deeply to create new experiences for both hotels and guests," Schuessler, in his capacity as CEO, stated with evident anticipation. This forward-looking perspective highlights the company’s focus on innovation and its commitment to unlocking novel functionalities.

Schuessler’s path to securing investment was paved with strong relationships, often initiated through warm introductions. Alfred Lin, a partner at Sequoia, emerged as an early and significant proponent of Safara’s vision, although he initially passed on an earlier investment opportunity. Schuessler fondly recalled Lin’s prescient words: "I remember him saying, ‘Maybe we can become partners in the future,’ and at the time I thought that was BS, but it turned out to be the truth." This anecdote illustrates the long-term relationship-building that underpins successful venture capital partnerships. His connection with Brian Rothenberg, a partner at Defy.vc, was forged through the AngelTrack network. Schuessler described their initial meeting as an immediate rapport: "He is extremely supportive through good and bad and we tend to see the world through a very similar lens." This shared perspective and Rothenberg’s unwavering support are crucial elements for navigating the inherent challenges of startup growth.

The newly acquired capital will be strategically deployed to accelerate product development initiatives and to significantly expand the number of hotels utilizing Safara’s platform. This expansion is not merely about increasing volume but about empowering a greater number of independent hotels with cutting-edge technology.

Looking ahead, Schuessler articulated Safara’s core objective for 2025 and beyond: "Our focus of 2025 and beyond is really to empower independent hotels with the same technology and network advantages as chain hotels." This ambition directly addresses the competitive disparity faced by independent operators. He further elaborated on the potential impact of achieving this goal: "If we get this right, not only do we help these hotels succeed, but the types of experiences that will unlock for guests are things that frankly don’t exist right now. And if we accomplish both of those things, the sky is the limit for Safara as a company." This visionary statement encapsulates Safara’s dual mission of fostering hotel success and pioneering innovative guest experiences, positioning the company for substantial growth and industry leadership. The integration of Skipper is a critical step in this journey, enabling Safara to offer a more comprehensive suite of tools and services to the independent hotel sector. The acquisition not only expands Safara’s reach but also brings valuable booking engine technology and expertise into the fold, further strengthening its value proposition for both hotels and travelers. The combined entity is poised to redefine how independent hotels operate and how consumers discover and book unique accommodations, creating a more equitable and vibrant hospitality ecosystem.