Los Angeles: Guesty has announced it has raised $35m in Series C funding, led by Viola Growth.
The funding was also led with participation from Vertex Ventures, Journey Ventures, Kingfisher Investment Advisors, La Maison Compagnie d’Investissement and existing investors, TLV Partners and Magma Ventures.
The round increases the company’s existing funding by almost double, bringing the total to $60M. The investment will reinforce Guesty’s grip on the short-term rental market where property managers are increasingly seeking out comprehensive technology solutions to support them in accomplishing multiple tasks on a daily basis.
Guesty will use the investment to open new offices in key growth markets, enhance product capabilities, introduce AI and machine learning into the platform, and increase its footprint across the vacation rental space. The company also plans to build out its integrations marketplace by continuing to form partnerships and successful integrations with third-parties that share the same aim of facilitating seamless, short-term rental management and positive guest experiences.
Guesty CEO and co-founder, Amiad Soto, said: “Guesty’s strategic analysis shows that the short-term rental business is a lucrative one – with an addressable market size of $169bn 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 per cent higher profits than long-term leases.
“With such a high demand from travellers, 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,” he added.
Since graduating from Y Combinator in 2014, the company has gone about building an innovative ecosystem in an already fragmented market, providing customers worldwide with a holistic, one-stop-shop where they can manage their properties across a number of online travel platforms.
Today, Guesty is utilised by both property managers and property management companies in 70+ countries.
These customers are reporting a 150 per cent increase in revenue annually, a 100 per cent 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, among others.
Viola Growth partner Natalie Refuah, who will join Guesty’s board of directors, said: “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 digitisation 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,” she added.
For more information on the Series C funding, visit the Guesty website here.