Safara Secures Undisclosed Funding Round Led by Sequoia and Defy.vc, Acquires Hotel Booking Engine Skipper

Safara, a burgeoning hospitality technology platform, has announced a significant funding round, the specifics of which remain undisclosed, spearheaded by prominent venture capital firms Sequoia and Defy.vc. This strategic investment also encompasses the acquisition of Skipper, an established online booking engine catering to independent hotels. With this latest infusion of capital, Safara has now raised a cumulative $14 million, fueling its mission to revolutionize the independent hotel sector.

The driving force behind Safara is its founder, Doug Schuessler, a serial entrepreneur whose passion for building businesses ignited in his childhood. Schuessler’s entrepreneurial journey is marked by a series of impactful ventures. He launched two startups before relocating to the bustling tech hub of San Francisco. His tenure at Square, a leading financial technology company, provided him with invaluable insights into the operations of a "real rocket shop," as he described it. This experience honed his understanding of scalable growth and operational excellence. Following his time at Square, Schuessler ascended to the role of chief revenue officer at Resy, a premier restaurant booking platform. It was during his impactful leadership at Resy that he gained deep experience in the consumer-facing hospitality industry, understanding the intricacies of user acquisition, retention, and revenue generation within a competitive marketplace.

The pivotal moment that redirected Schuessler’s focus towards the hotel industry occurred after Resy’s acquisition by American Express. This major transaction, which saw the prominent financial services giant absorb the popular reservation platform, provided Schuessler with a unique vantage point. "After Resy sold to AMEX, Schuessler said he started studying the hospitality technology industry more and found himself hooked on hotels," the original report states. This period of introspection and market analysis revealed a significant unmet need within the independent hotel segment. He observed a challenging landscape for these smaller, often family-owned establishments. "Independent hotels really need the help," he told TechCrunch, articulating a clear and compelling problem statement.

Schuessler elaborated on the evolving competitive pressures faced by independent hotels. He noted that in decades past, the vast majority of hotels across the nation were independently owned and operated, fostering a diverse and unique hospitality ecosystem. However, a significant shift has occurred. "Decades ago most of the hotels in the country were independently owned, but hotel chains have started to buy up these smaller properties, leaving the remaining independent hotels with more competition," he explained. This consolidation trend, driven by the expansion of large hotel conglomerates, has intensified the competitive environment, making it increasingly difficult for independent hotels to thrive and maintain their market share without robust technological and marketing support.

Recognizing this critical gap, Schuessler, alongside his co-founder Cody Rose, who also boasts a strong background at Resy, embarked on the creation of Safara. Their vision was to build a comprehensive platform that empowers both consumers and independent hotels. Safara aims to offer a seamless booking experience for travelers, providing access to a vast inventory of hotels worldwide, encompassing both major chains and independent properties. This broad reach is crucial in democratizing access to global travel accommodations.

The Safara platform distinguishes itself through a carefully curated list of hotels, drawing from a blend of consumer data and invaluable community-sourced recommendations. This approach ensures that the platform not only offers extensive choice but also highlights properties that are favored by travelers and trusted by a community of discerning guests. Furthermore, Safara incorporates a compelling rewards program designed to incentivize bookings. This program offers cash back to users on their bookings, which can then be applied towards future travel, fostering loyalty and encouraging repeat engagement with the platform.

A key component of Safara’s strategy, particularly highlighted by the acquisition of Skipper, is its commitment to supporting independent hotels directly. Independent hotels that integrate with Safara, or more specifically, leverage the acquired Skipper technology, can access the platform commission-free. While any hotel can technically connect to Safara, the commission-free model for independent properties is a significant draw, directly addressing their need for cost-effective distribution channels. Schuessler further elaborated on this symbiotic relationship, stating, "Think of it as another direct channel alongside their website." This positions Safara not as a competitor to a hotel’s direct booking efforts, but as a complementary channel that expands their reach and visibility.

The integration of Skipper is poised to deepen this connection. "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," Schuessler explained. This innovative approach signifies a move beyond a simple booking aggregator. By allowing guests who book directly on a hotel’s own website to manage their reservations within the Safara app, Safara bridges the gap between direct bookings and platform-enabled convenience. This creates a more unified and streamlined experience for the guest, while simultaneously providing valuable data and engagement opportunities for the hotel.

The acquisition of Skipper by Safara was facilitated by a mutual investor who identified a strong synergy between the two companies’ visions for the future of hospitality technology. The original report notes, "The Safara and Skipper team came together after being introduced by a mutual investor who felt the companies had a similar outlook on the hospitality space." This introduction proved to be the catalyst for a strategic union. Schuessler recounted the process, stating, "We actually made a pass at the deal earlier in the year, but the stars eventually aligned." The shared conviction was that collaboration would amplify their individual strengths. "Both companies have a much better chance at achieving the shared vision together than they do apart," he emphasized. The co-founders of Skipper will be integrated into Safara, contributing their expertise and insights to the expanded entity.

Safara’s overarching ambition is to differentiate itself from existing players in the market by offering a dual-pronged approach: robust software solutions for hotels and valuable products for consumers. This holistic strategy aims to address the entire hospitality ecosystem. "Safara aims to be different from others on the market by offering software solutions to hotels and products that serve the consumer on their side, too," the article highlights. The true magic, according to Schuessler, will unfold in the near future as these two components are more deeply integrated. "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," he stated, underscoring his role as CEO and his forward-looking perspective.

The journey to securing this significant funding round involved strategic relationship-building. Schuessler noted that he connected with his investors through "warm introductions," a testament to the power of networking and strong professional relationships within the venture capital community. Alfred Lin, a partner at Sequoia, emerged as an early and influential supporter of Safara. Schuessler shared a memorable anecdote about his initial interactions with Lin: "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 highlights a long-term vision and belief in Schuessler’s entrepreneurial capabilities. His connection with Brian Rothenberg, a partner at Defy.vc, was forged through the AngelTrack network, and their rapport was immediate and profound. "He is extremely supportive through good and bad and we tend to see the world through a very similar lens," Schuessler remarked, emphasizing the alignment of values and strategic thinking.

The fresh capital secured by Safara will be strategically deployed to accelerate product development and expand the network of hotels utilizing its platform. This investment is critical for scaling the company’s operations and enhancing its technological capabilities. Schuessler articulated a clear strategic focus for the coming years: "Our focus of 2025 and beyond is really to empower independent hotels with the same technology and network advantages as chain hotels." This objective speaks to Safara’s core mission of leveling the playing field in the hospitality industry, providing independent establishments with the tools and resources necessary to compete effectively with larger, more established hotel chains.

The potential impact of Safara’s success extends beyond the financial well-being of the hotels it serves. Schuessler believes that by empowering independent hotels, Safara will unlock novel and enriching experiences for travelers. "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," he posited. This visionary outlook suggests that Safara aims to foster a new era of personalized and unique travel experiences, driven by the resurgence of independent hospitality. The ultimate aspiration is clear: "And if we accomplish both of those things, the sky is the limit for Safara as a company." This statement encapsulates the ambitious scope of Safara’s vision and its potential to become a dominant force in the hospitality technology landscape. The acquisition of Skipper and the significant backing from Sequoia and Defy.vc position Safara for substantial growth and innovation in the coming years, promising a more equitable and exciting future for independent hotels and the travelers who seek authentic experiences.