Property management software (PMS) company Guesty has raised $35M in its latest funding round to back expansion plans.
Series C funding was led by Viola Growth with participation from Vertex Ventures, Journey Ventures, Kingfisher Investment Advisors, La Maison Compagnie d’Investissement and existing investors TLV Partners and Magma Ventures.
The PMS company specialises in operating short-term rental management for both property managers and property management companies in over 70 countries. These customers report a 150% increase in revenue annually, a 100% increase in listings annually and 50 or more hours saved per week, on average, due to Guesty’s features.
These features include task automation, 24/7 guest communication services and a unified inbox to manage all guest correspondence in one place.
The funding round more than doubles the company’s existing funding, bringing the total to $60M and reinforcing its grip on the short-term rental market where property managers are increasingly seeking comprehensive technology solutions.
Guesty will use the investment to open new offices in key growth markets, enhance product capabilities, introduce artificial intelligence (AI) and machine learning into the platform and increase its footprint in verticals adjacent to urban properties, like the vacation rental space.
The company also plans to build out its integrations marketplace by forging partnerships with third-parties that “share the same goal of facilitating seamless, short-term rental management and positive guest experiences,” said Guesty.
Amiad Soto, co-founder and chief executive officer of Guesty, said: “Guesty’s strategic analysis shows that the short-term rental business is a lucrative one – with an addressable market size of $169B in 2018 alone.
“The increasing growth of the space, thanks to sites like Airbnb, Booking.com and many more, has resulted in short-term lets commanding around 30% higher profits than long-term leases.
“With such a high demand from travelers, Guesty is filling a crucial role in helping property managers more efficiently manage their overwhelming list of to-dos and more importantly, grow their businesses.
“This market will only continue to grow as we see the ripple effect of trends like remote working, the shared economy and travel becoming more of a commodity, rather than a luxury.”
Since graduating from Y Combinator in 2014, the company has continued to build an ecosystem in the travel market, providing customers worldwide with a holistic, one-stop-shop where they can manage their properties across a variety of online travel platforms.
Natalie Refuah, partner at Viola Growth who will join Guesty’s Board of Directors, added: “Guesty was the first to recognise the potential of the property management market and has quickly become a category leader with its vertical-oriented, end-to-end approach.
“Technology and AI continue to disrupt the innovation stack, acting as a catalyst to the digitization of ‘traditional’ areas such as real estate and travel.
“Guesty is leading the charge, fostering a more seamless experience for property managers while providing clear advantages to customers and ultimately, their guests.
“We believe that with its experienced and elite executive team, Guesty is fully equipped to modernise and revolutionise the property management ecosystem.”