Selina CEO says $60M in funding will get startup through crisis

CEO of Adam Neumann–backed company says funds will be enough to survive crisis

TRD NATIONAL /
May.May 07, 2020 11:00 AM
Selina CEO Rafael Museri (Credit: The Vollman Group)
Selina CEO Rafael Museri (Credit: The Vollman Group)

Selina, a London-based hotel and co-working company backed by Adam Neumann, has reportedly raised some $60 million in financing.

Speaking with Skift, the publication that first reported the news, representatives for the Selina declined to clarify the exact amount, but confirmed it had raised more financing “in that range.”

“We have the funds now to get through the crisis and to be strategic enough to get stronger,” CEO Rafael Museri told the publication.

Founded in Panama in 2015, Selina operates more than 60 locations across the globe, but its U.S. launch has been rocky.

The Real Deal previously reported that its executives were for months unable to persuade investors to commit to a $500 million real estate investment fund to buy U.S. properties. It also fell short on targets, opening just two of more than a dozen Selina-branded locations slated to launch here last year. To cover its operational costs, executives had been trying to secure a $75 million convertible loan, internal documents show.

The pandemic only intensified its financial problems: Citing sources familiar with the matter, Skift reported that the company feared it was approaching bankruptcy in mid-March. (Representatives for Selina disputed that account.)

To reduce costs, the company furloughed hundreds of employees in recent months, and negotiated discounts with many of its landlords.

Internal documents from before the pandemic forecast the company would be profitable by 2022 and reach revenues of more than $2 billion by 2024 — projections that some would-be invested had balked at.

But Yoav Gery, Selina’s president, told TRD earlier this year that the company’s pitch was well received.

“We’ve met, and continue to meet with, many potential investors around the world,” he said. “Some have chosen to invest and some have not. But we consistently receive positive feedback about our brand, our model and our team.”

At the time, he said the company was in the process of securing a $60 million loan from the Inter-American Development Bank to fund growth projects in South America.

It’s unclear what the source of the latest $60 million raise was.

[Skift] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
2450 Colorado Avenue and IWG CEO Martijn Roordink (Credit: Google Maps and Eóin Noonan/Sportsfile via Getty Images)

Co-working firm Spaces sues landlord over $5.4M in tenant improvements

Co-working firm Spaces sues landlord over $5.4M in tenant improvements
Adam Neumann and the home (Credit: Jackal Pan/Visual China Group via Getty Images and Zillow)

Adam Neumann listing Bay Area “Guitar House” for $27.5M

Adam Neumann listing Bay Area “Guitar House” for $27.5M
Amol Sarva and 643 Olive Street (Credit: Google Maps)

Knotel no pay: Lawsuit says company broke profit-sharing agreement

Knotel no pay: Lawsuit says company broke profit-sharing agreement
Crown Group’s head of U.S. development, Patrick Caruso and a new rendering of the project (Credit: Koichi Takada Architects/LA Times)

Crown Group makes dramatic changes to $500M DTLA project

Crown Group makes dramatic changes to $500M DTLA project
NeueHouse is preparing to open Venice co-working space

NeueHouse is preparing to open Venice co-working space

NeueHouse is preparing to open Venice co-working space
From left: Hiten Samtani, Bridgid Coulter of Blackbird, Kat Lau from Industrious and Jim Doorne of IWG

What’s next for the co-working business?

What’s next for the co-working business?
From left: Bridgid Coulter of Blackbird, Kat Lau from Industrious and Jim Doorne of IWG

TRD panel: Co-working after the We-pocalypse

TRD panel: Co-working after the We-pocalypse
From left: Adam Neumann and Sundar Pichai (Credit: Getty Images and iStock)

Google, WeWork propel co-working and tech firms to LA leasing title

Google, WeWork propel co-working and tech firms to LA leasing title
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...