Tel Aviv, Israel-based property management platform Guesty recently announced it raised $35 million in Series C funding led by Viola Growth. Vertex Ventures, Journey Ventures, Kingfisher Investment Advisors, La Maison Compagnie d’Investissement and existing investors TLV Partners and Magma Ventures also participated in this round.
This round of funding more than doubles Guesty’s existing funding and brings the total to $60 million. Plus it validates the demand for property managers increasingly seeking comprehensive technology solutions to aid with numerous tasks for short-term rentals.
Using Guesty, users are able to manage listings from multiple online travel agencies including Airbnb, Booking.com, Agoda, and TripAdvisor. And Guesty is now utilized by property managers and property management companies in more than 70 countries. And these customers have been reporting a 150% increase in revenue annually along with a 100% increase in listings annually and 50 or more hours saved per week on average due to Guesty’s features. The features include task automation, 24/7 guest communication services, and a unified inbox for managing all guest correspondence in one place.
Guesty is going to use the funding to open new offices in key growth markets and enhance product capabilities, introduce artificial intelligence and machine learning into the platform and increase its footprint in verticals adjacent to urban properties including vacation rental space. And Guesty is also planning to build out its Integrations Marketplace by continuing to forge partnerships and successful integrations with third-parties that have the same goal of facilitating seamless, short-term rental management, and positive guest experiences.
Photo: Guesty
“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,” said Guesty co-founder and CEO Amiad Soto. “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.”
After graduating from the Y Combinator startup accelerator in 2014, the company continued building on its innovative ecosystem in a fragmented market and provided customers worldwide with a holistic and one-stop-shop where they can manage properties across a variety of online travel platforms.
“Guesty was the first to recognize the potential of the property management market and has quickly become a category leader with its vertical-oriented, end-to-end approach,” added Viola Growth partner Natalie Refuah — who is joining the company’s board of directors. “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 modernize and revolutionize the property management ecosystem.”
