CuddlyNest, an online travel agency based in Orlando, has raised $3.5 million from angel investors. The company, founded in 2017, has a total of $14 million, all from private investors.
According to CuddlyNest, it currently offers reservations for four million properties in more than 200 countries and territories, from luxury hotels to hostels to vacation rentals. The company will use the funds to expand the team and add new product features.
“I’m happy with this phase. The support from investors is a testament to our commitment to our vision and opens new avenues for us to be better – and bigger – with our business model,” said Ritesh Raj, Co-Founder and Chief Operating Officer of CuddlyNest.
“Changing travel habits increase the need for search options tailored to their emerging needs and newly discovered vulnerabilities. Our main focus is on designing the best and most intuitive search results pages and ensuring that inventory always matches the search intent and with the greatest variety. “
The company says it is focusing on offering more properties with flexible cancellation policies, as these are the bulk of its bookings in the last six months. Filters were also added to help consumers identify properties that have implemented energy-saving and environmental strategies.
CuddlyNest claims to offer the “lowest total commission fees” compared to other global OTAs and uses a cost-sharing model that allows property owners to adjust the amount of CuddlyNest commissions they pay relative to guests payouts.
The company offers an 18-month CuddlyNest Care program from December, which waives commissions for individual property owners – not property managers – on two lists. Raj said the goal was to “empower individual owners and support each other over the next 18 months” and “add inventory at a much faster pace”.