Travel and tourism are once again in the spotlight for both consumers and businesses. To highlight this resurgence, a startup specializing in travel software has secured substantial funding. Guesty, a platform enabling accommodation managers to streamline their operations on platforms like Airbnb and Vrbo, as well as directly with travelers, has raised $130 million.
According to sources familiar with the matter, Guesty’s Series F funding round values the company at approximately $900 million post-money.
Headquartered in New York with origins in Israel, Guesty reports a fivefold revenue increase over the past three years and anticipates reaching profitability this year, although specific revenue figures were not disclosed.
Leading this funding round is KKR, with Apax Funds, BDT & MSD Partners, and Sixth Street also participating.
In the context of the post-Covid travel industry, which is witnessing a robust recovery, Guesty’s funding reflects a broader trend of significant investments in the sector. Notably, the global travel and tourism sector is forecasted to generate record-high sales of $11.1 trillion in 2024, as per the World Tourism and Travel Council.
This funding surge has been evident in multiple nine-figure rounds for Guesty and its competitors. For instance, Guesty’s previous Series E raised $170 million, valuing the company at $690 million in August 2022. Hostaway, a close competitor, secured $175 million in its first major funding round last May. Similarly, Mews, focusing on SaaS for hoteliers, raised $110 million at a $1.2 billion valuation in March.
Amiad Soto, CEO of Guesty, acknowledged the competitive fundraising landscape but expressed optimism about the company’s path to profitability this year. With plans to utilize the funding for platform expansion, including enhancing existing services, venturing into medium-term rentals, and potentially pursuing acquisitions, Guesty aims to strengthen its position in the evolving travel and accommodation management market.
Joining Guesty’s board with this round are Stephen Shanley and Lauriane Requena from KKR, along with Dennis Kavelman from Inovia Capital. Shanley emphasized Guesty’s leadership in property management and its alignment with the growing demand for short-term rental solutions.
Source link
