Limehome has topped up its Series A funding with a further €10 million, bringing the total raised so far to €31 million.
Existing investors HV Holtzbrinck Ventures, Lakestar and Picus Capital all participated in the top-up funding.
The Munich, Germany-based accommodation startup, which aims to offer apartments with the quality standard of hotels, received €21 million in February this year, which it planned to put towards expanding the concept.
Confirming the additional funding, the company says it plans to focus on its proprietary technology platform as well as expansion.
Limehome has earmarked Spain for expansion, with the apartment concept coming to cities including Granada, Madrid and Seville.
The company, which launched in 2018 and has a presence in about 35 locations, says its doubling of revenue since the outbreak of COVID-19 in Germany has helped prove the concept to investors.
During last month's Phocuswright Europe 2020 virtual event, Christoph Shuh, a partner at Lakestar, said that in a "post COVID new normal" vacation rental could overtake hotels.
"I think there are a lot of opportunities for that kind of inventory and that will stay. People are testing vacation rentals this year and they like it."
Further proof of the current interest in alternative accommodation came last week when Casai, a Mexico city-based startup announced funding of $48 million for its smart apartment concept.