Recharge, San Francisco based company which helps the users book hotel room for as low as 67 cents per minute or $40 per hour has raised its seed round worth $2.3 Million. The seed round was led by Binary Capital and other investors like Eniac VC, Expansion VC, Floodgate and individual investors such as Scott Banister, Harry Cheung and Rick Marini.
Recharge has partnered with some of the big names in hotel industry including starwood and Hyatt. It is in talks with a lot more premiere hotels across San Francisco, however, they did not share the names.
Recharge works on splitting the revenue model. Depending on the duration of the stay of the guest, it takes the share from the hotel. During an interview, Emmanuel Bamfo told media that the main aim of the service is to make the rooms available for any short duration, be it for a quick shower before a meeting or catching up with someone special during the work hours. The model seems to have worked well for the partner hotels and the startup.
The investors in Recharge feel that the startup can have a lot broader appeal in the time to come and it can target many verticals of the guests coming to the city for work or leisure purpose. It has given a great option to hotels to make use of the empty rooms and also to the users to pay only for the time they are in the hotel.