Proptech company Guesty announced a Series-E funding round of $170 million. Leading the investors were Apax Digital Funds, MSD Partners and Sixth Street Growth, with current investors Viola Growth and Flashpoint also participating.
According to startup information site Crunchbase, the new round brings the total funding to $284.5 million.
The company, which has property management software for short-term rentals and hospitality, says the money will go to “meet increasing demand, pioneer new solutions that support the growing needs of hospitality operators, secure key acquisitions, and expand into new business verticals to solidify Guesty’s position” in the industry.
Series D and E funding rounds are typically considered a late need for cash to expand before achieving an IPO, explains Startups.com. That may be to stay private longer and increase their value, or it can be that the company hadn’t achieved expectations from earlier rounds. Series-D funding rounds are unusual, as few companies make it that far, and E is even rarer.
“Since the onset of the pandemic in early 2020, the short-term rental (STR) industry has grown exponentially, with travelers spending more than $200 billion on STR accommodations in 2021 alone,” says Guesty. “As the ways consumers choose to live, work, socialize and travel continue to shift, the lines between traditional hotels and rental accommodations have blurred. This trend has accelerated the need for versatile hospitality management technology as operators across the board adapt to new and elevated guest expectations.”
The company’s software enables owners and operators “to optimize and scale operations, manage and distribute inventory … with the tools, data-driven insights and enhanced services” to effectively respond to these market trends and empower them to succeed.
“Customers use Guesty to centralize their reservations across all major booking channels, including Airbnb, Vrbo, Expedia and Booking.com,” the company explained. “The platform automates and expedites guest communications, reviews, cleaning and other operational tasks, while also facilitating direct bookings, resource and revenue management, smooth payments systems, accounting and damage protection. With its large marketplace of third-party integration partners and its open API capabilities, the platform adapts to specific business and operational requirements, providing comprehensive and bespoke solutions that serve as a one-stop-shop covering all property management needs.”