New York-based Diamo, which helps independent hotels optimize revenue generation, has secured $4 million in seed funding co-led by San Francisco-based Thayer Ventures and Canada’s Inovia Capital. Avalon Capital Group and angel investors also participated. Diamo said it would use the funding to accelerate product development and expand globally.
Diamo’s technology was initially developed at hotel operator Life House before being spun off in 2024, with its senior vice president for revenue, James Kay, as CEO. Its platform combines multiple revenue management tools and functions, besides features such as automated dynamic pricing, omnichannel digital marketing, a conversion-optimized website and booking engine. Diamo says its platform gives independent hoteliers the same tools as large, branded hotel groups, and helps them raise revenues by 35%.
“The revenue challenges faced by smaller independents are far more complex than what existing disconnected solutions address,” said Kay, who previously was an investment banker with TD Securities. “Revenue performance is what enables unique independent hotels to offer authentic, memorable travel experiences.”
According to Kay, the over 400,000 smaller independent hotel operators globally have been underserved by solutions for the revenue problem. “With Diamo, we aim to empower independent hoteliers with a simple platform that unlocks a holistic and advanced revenue management strategy that was previously out of reach,” he said when the company was spun out of Life House.
Diamo has clients not only in the United States and Canada, but also in Central American, European, African and Asian countries. The company has under development an AI product called Andi that uses real-time data to build revenue strategies and launch ad campaigns.
“Diamo is building something the market has been waiting for,” said Tyler Carrico, a partner at San Francisco-based Thayer Ventures who will join Diamo’s board.
In 2024, Diamo’s platform earned the “RMS Innovation of the Year” award from the TravelTech Breakthrough Awards.
