Safara Secures Undisclosed Funding Round Led by Sequoia and Defy.vc, Acquires Skipper to Empower Independent Hotels

In a significant move set to reshape the landscape of independent hospitality technology, Safara, a burgeoning platform focused on empowering independent hotels, has announced the closure of an undisclosed funding round led by prominent venture capital firms Sequoia and Defy.vc. The company also revealed its strategic acquisition of Skipper, a well-regarded online booking engine specifically designed for independent hotels. This dual announcement underscores Safara’s ambitious vision to equip smaller hotel operators with the technological prowess and network advantages traditionally enjoyed by large hotel chains.

The driving force behind Safara is its founder and CEO, Doug Schuessler, a seasoned entrepreneur whose passion for building businesses has been a constant since childhood. His entrepreneurial journey began with two early-stage startups, a formative period that also saw him relocate to the innovation hub of San Francisco. There, he joined Square, a fintech giant, seeking firsthand experience within what he described as a "real rocket shop." This experience provided invaluable insights into scaling technology companies. Following his tenure at Square, Schuessler transitioned to the role of chief revenue officer at Resy, the popular restaurant booking platform. It was during his time at Resy, particularly after its acquisition by American Express, that Schuessler found himself increasingly drawn to the intricacies of the hospitality industry.

"Independent hotels really need the help," Schuessler stated in an interview with TechCrunch, articulating a deep-seated conviction born from his immersion in the sector. He observed a significant shift in the hotel market over decades, noting that while independent ownership once dominated, a wave of acquisitions by major hotel chains has drastically altered the competitive environment for remaining independent properties. This consolidation has left these smaller establishments facing formidable challenges in maintaining their market share and operational efficiency.

Recognizing this critical need, Schuessler, alongside his co-founder Cody Rose – a fellow alumnus of Resy with a shared understanding of the hospitality tech ecosystem – established Safara. The platform’s core mission is to provide a comprehensive booking solution that aggregates nearly every hotel globally, encompassing both major chains and independent boutique properties. This ambitious scope aims to offer consumers unparalleled choice while simultaneously providing a vital direct booking channel for hotels.

Safara’s curated list of hotels is meticulously assembled through a combination of consumer data analysis and community-sourced recommendations, ensuring a blend of popular choices and hidden gems. A key feature of the platform is its integrated rewards program, which offers users cash back on bookings, redeemable for future travel. For independent hotels, the integration of Skipper’s technology offers a significant advantage: commission-free booking capabilities. While any hotel can technically leverage Safara’s platform, the focus on commission-free access for independent properties is a deliberate strategy to level the playing field.

Schuessler likens the Safara platform to an additional direct channel for hotels, operating alongside their own websites. "Think of it as another direct channel alongside their website," he explained. "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 innovative approach bridges the gap between direct bookings made through a hotel’s own channels and the comprehensive management capabilities offered by the Safara application, aiming to enhance both guest convenience and hotel operational oversight.

The acquisition of Skipper represents a pivotal moment for Safara. The introduction of a mutual investor facilitated the connection between the two companies, recognizing a shared vision for the future of hospitality technology. The Skipper team, comprising its co-founders, will integrate into the Safara organization, bringing their expertise in online booking engines for independent hotels. "We actually made a pass at the deal earlier in the year," Schuessler admitted, highlighting that while initial discussions didn’t immediately materialize, the timing eventually proved opportune. "Both companies have a much better chance at achieving the shared vision together than they do apart," he emphasized, underscoring the synergistic potential of the merger.

Safara’s strategic differentiation lies in its dual-pronged approach: offering robust software solutions to hotels while simultaneously developing consumer-facing products that enhance the travel experience. The company anticipates that the true magic will unfold in 2025 as the integration of Safara and Skipper deepens, unlocking novel experiences for both hotel partners and their guests. As CEO, Schuessler is at the forefront of this transformative journey, driving the product development and strategic initiatives.

The recent funding round, led by industry heavyweights Sequoia and Defy.vc, brings Safara’s total funding to $14 million. Schuessler highlighted the importance of warm introductions in securing these key investor relationships. Alfred Lin, a partner at Sequoia, was an early proponent of Safara’s vision, though he initially passed on an earlier investment opportunity. Schuessler fondly recalled Lin’s words, "Maybe we can become partners in the future," a sentiment that has now proven prophetic. His connection with Brian Rothenberg, a partner at Defy.vc, was forged through the AngelTrack network, and their immediate rapport was evident. "He is extremely supportive through good and bad and we tend to see the world through a very similar lens," Schuessler remarked about Rothenberg, emphasizing the alignment in their strategic perspectives and mutual trust.

The newly acquired capital will be instrumental in scaling Safara’s product development efforts and expanding its network of hotel partners. The company’s overarching objective for 2025 and beyond is to equip independent hotels with the same technological advantages and network benefits that are the hallmark of large hotel chains. "Our focus of 2025 and beyond is really to empower independent hotels with the same technology and network advantages as chain hotels," Schuessler stated. He expressed confidence that by achieving this goal, Safara will not only contribute to the success of these independent businesses but also unlock unprecedented guest experiences that are currently beyond reach. "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," he concluded, painting a picture of ambitious growth and transformative impact on the hospitality industry.

The integration of Skipper into Safara’s operations is expected to streamline the booking process for independent hotels, offering them a modern, efficient, and commission-free direct booking engine. This acquisition, coupled with the significant influx of capital, positions Safara as a formidable player poised to challenge the dominance of larger hotel groups by championing the unique value proposition of independent hospitality. The company’s commitment to fostering both hotel success and exceptional guest experiences signals a promising future for the independent travel sector.