As the vacation rental industry has grown in recent years, HostGPO Inc. says owners and operators have needed help to furnish their rental properties. The company, based in Westwood, provides a digital marketplace for property owners to purchase home goods, furniture and appliances at a discounted price. It closed a $6 million funding round in late May led by Century City-based venture firm Navitas Capital and purchasing cooperative Omnia Partners.
HostGPO is a group purchasing organization, meaning it leverages the purchasing power of its consumers to secure discounts on goods from vendors. Current retail and hospitality partners include William-Sonoma Inc., Brooklinen, West Elm, Home Depot Inc. and Rugs USA.
“In an industry that is still developing, we offer not only access to a curated assortment of products at a discount, but also the educational component of how to best operate in the space,” HostGPO co-founder and Chief Executive Jeff Iloulian said. “HostGPO is the first group purchasing organization in the vacation rental industry. While a few copycat businesses have started to arise, HostGPO sets itself apart with its superior and exclusive vendor contracts and its proprietary ordering platform.”
Goods and supplies offered in HostGPO’s digital marketplace include mattresses, furniture, toiletries, rugs, linens, cleaning supplies and rental insurance. The company said it has served more than 250,000 properties.
“As a vacation rental operator myself for almost a decade, I personally experienced many of the pain points involved with buying and setting up homes in this space,” Iloulian said.
He said that HostGPO hopes to continue expanding the vendor offerings on its marketplace to become a “one-stop shop” for property owners. With the new funding, it will focus on building out its team and product. HostGPO’s business is a software as a service model that charges users an annual subscription to access its online marketplace.
“In the rapidly growing vacation home and short-term rental markets, HostGPO provides a critical piece of missing digital infrastructure,” Travis Putnam, Navitas’ managing partner, said in a statement.
Additional investors include Playa
Vista-based venture firm 75 & Sunny and
Brian Lee, the founder of local companies
LegalZoom Inc. and The Honest Co. Inc. This funding round is HostGPO’s first outside capital.
“As we continue to grow in number and size, our deals get better and our ability to support our members also increases,” Iloulian said.