H2O Hospitality, a Korean startup dedicated to vacation rental management in Japan, said Tuesday it has raised $7 million funding from five investors to meet its fast-growing working capital needs on the back of strong growth.

Joining the latest round were Samsung Venture Investment, Stonebridge Ventures, IMM Investment, Shinhan Capital and Wonik Investment Partners. The round brought H2O’s total funding to $18 million.

The valuation of the firm has jumped threefold since the previous round of funding in May 2017, according to H2O.

Founded in 2015, the Seoul-based property management startup launched its service in Japan in December 2017, as Japan loosened restrictions on vacation rental management to supplement hotel-centered accommodation business and mitigate a shortage of accommodation facilities ahead of the 2020 Tokyo Olympics.

H2O has secured 5,000 spaces in Japan -- ranging from hotels to minpaku, private residences rented out for short-term accommodation -- and rented rooms through 25 online travel agencies at home and abroad. Its revenue has doubled on a quarterly basis since the third quarter of 2018, according to the startup.

“We’re pleased to be part of the fastest growing hospitality company in Japan,” said Eric Kim, senior investment manager of Samsung Venture Investment. “H2O has already proven product market fit within Japan, and we expect them to continue to thrive as they expand outside of major cities.”

By Son Ji-hyoung (consnow@heraldcorp.com)