Guesty raises $130 million at $900 million valuation, eyeing IPO in 2025
Guesty raises $130 million at $900 million valuation, eyeing IPO in 2025
Operating in over 80 countries, Guesty’s platform provides both enterprise and SMB property managers as well as individual hosts with tools to manage the entire rental journey
Guesty, which has developed a property management software platform for the short-term rental (STR) and hospitality industry, announced on Wednesday a $130 million Series F funding round led by global investment firm KKR. Inovia Capital, together with existing investors Apax, MSD and Sixth Street, also joined the round.
Guesty didn’t reveal its valuation in the round, but it is estimated at $900 million, a significant increase from its $170 million Series E in August 2022. The company’s ARR is currently estimated at $100 million, with $4 billion worth of deals going through its platform.
The STR industry is growing rapidly and is currently valued at $277 billion. Operating in over 80 countries, Guesty’s platform provides both enterprise and SMB property managers as well as individual hosts with tools to manage the entire rental journey. The company’s software platform helps property managers advertise and manage their vacation or short-term rental properties.
In a conversation with Calcalist, Vered Raviv Schwarz, President and COO, stated, "We initially planned that the previous funding round would be our last one. There was no proactive plan to seek additional funding, but our focus on consolidation and potential acquisitions prompted us to consider another round. The process unfolded swiftly when KKR approached us, and we quickly proceeded.
"Our original plan was to complete an IPO in 2024," she added. "However, we are now contemplating postponing it until the end of 2025, depending on the market conditions. We are on the verge of profitability and anticipate having control over our future within a year.
"The cornerstone of our company's operations is property management. Nevertheless, we have diversified our offerings by venturing into the fintech sector. We developed GuestyPay, a payment clearing solution tailored for the hospitality industry. Additionally, we introduced an accounting module for financial management and reporting. We also devised a Damage Protection solution to mitigate property damages and incorporated a system for managing digital locks. Furthermore, we have developed a series of additional solutions aimed at providing our customers with comprehensive property management services."
Guesty, founded in 2013 by brothers Amiad and Koby Soto, employs 750 people in 15 offices across the world.
Guesty's new funding will be used for expansion across the U.S. Jonah Mandel joins as VP of Sales to lead the expansion. Additionally, Guesty will invest in catering to the European market, focusing on France, Germany, and Spain, while reinforcing its presence in Australia with customer tailored developments.
KKR, which has $554 billion in assets under management, is making the investment in Guesty primarily through its Next Generation Technology Growth Fund III, a fund dedicated to growth equity investment opportunities in the technology space.
"Guesty has enjoyed astonishing five-fold growth during the last three years. We’re delighted that this has been recognized by top-tier investors KKR and Inovia, and we’re excited to have them onboard alongside our other investors as we enter our next growth period," said Amiad Soto, Guesty’s CEO and Co-Founder. "The surge in those seeking short-term rentals continues and our platform remains at the vanguard of the industry. As we embark on creating the industry’s first intelligent property management platform, we’ll continue to develop its functionality and AI capabilities to deliver first-to-market features and best-in-class support for our customers."
The company also asked to add: "Even in these moments of joy, we want to mention the late Lidor Levy, a beloved team member, who was murdered in the terror attack in Gan Yavne. Lidor was a talented and respected developer at Guesty. He is survived by his wife, his six-month-old daughter, his parents, a brother, and a sister. It is crucial for us, both as friends and as an organization, to remember him even at this moment."
