Stellar customer ratings and over $1bn under management - that’s rental management done right!
Business overview
| Location | Trogen, Switzerland |
|---|---|
| Social media | |
| Website | www.guestready.com |
| Sectors | Travel, Leisure & Sport Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | CHE-200.707.566 |
| Incorporation date | 17 May 2016 |
Investment summary
Business highlights
- Operational in 20 cities across Europe, the Middle East, and Asia
- Sold 1,200,000+ guest nights generating rental income of €50M+
- Managed a portfolio of around 2,500 properties, worth over $1BN
- EBITDA positive in Aug. 2020*, and top rated (4.8/5) by customers
Learn more about convertible campaigns.
Idea
Introduction
GuestReady is a leading property technology company with a focus on short-term and mid-term rental management. We launched operations in 2016 and are presently active in over 20 cities around the world, including cities such as Paris, London, Lisbon, and Dubai.
Our mission is to become the world's largest short-term rental management company. We source our properties from property owners (hosts) and then rent these properties to guests. We coordinate all the required processes such as cleaning, linen services, or key-handover.
We have developed a property management system, which allows us to automate many of the previously manual property management services or to deliver these services remotely from centralized support offices.
The software powers GuestReady's own operations but is also offered white-labelled to vacation rental management companies and traditional property managers as a Software-as-a-Service (SaaS) solution.
Substantial accomplishments to date
2016
• Launched in 6 cities on 2 continents
• Raised a EUR 640K Angel round
• Reached 40 properties managed
2017
• Acquired London and Paris based competitor ERS
• Raised a EUR 2.7M Seed round led by Impulse VC
• Released our host dashboard where hosts can see bookings and invoices
• Reached 200 properties managed
2018
• Expanded operations in Dubai and Portugal
• Set up a 24/7 central operations centre in Malaysia
• Won the Serviced Apartment Awards as Best Service Provider
• Released our iOS and Android app for cleaning and other task management
• Reached 700 properties managed
2019
• Introduced 24/7 guest support in French
• Acquired France and Portugal based competitor BnbLord
• Raised EUR 5.1M Series A led by Venture Souq and Impulse VC
• Named as one of the top 10 UK startups in 2019 by Startups.co.uk
• Achieved EUR 28M in booking value, a 379% annual growth rate since 2016*
• Released our PMS as white-labelled solution to third party property managers
• Reached 2,500 properties managed, estimated to be worth over 1BN USD
2020
• Expanded operations to Switzerland
• Reached EBITDA profitability in August*
• Awarded Rising Star at the Shortyz Awards
• Reached over 1,200,000 cumulative guest nights sold
• Generated over € 50,000,000 in cumulative booking value
• Top-rated (4.8/5) by hosts and guests on Trustpilot from 600+ reviews
• Released automated payment processing via virtual wallets
• Built a team of 100 people from 22 nationalities, speaking 17 languages
Monetisation strategy
We started off with a business model called Full Property Management, which generates a variable commission on rental income. In addition, we also receive the cleaning fee paid by the guest. The total revenue share from rental income is around 28% with a gross profit margin of ca. 55%*.
Since 2019, we are offering a white-labelled version of our property management system (PMS) to vacation rental management companies and traditional property managers that intend to tap into the lucrative niche of short-term rental management. The software is offered at a commission of ca. 2% of the partner's gross rental revenues.
In addition to the Software-only business model, we also offer Online Property Management services such as guest communications or revenue management to our clients, therewith increasing the attainable revenue share to around 6% in commission.
The detailed services included in each business model can be seen below.
Use of proceeds
Our core business model is profitable*, however, we keep investing in areas that will make our business become even stronger in the future. For this, we are raising additional funding.
The funds raised in this round will be allocated towards three main areas:
1) Continued growth in already existing markets, broadening the footprint of available cities;
2) Investment into tech product development to further increase operational efficiency;
3) Build out our Software-only and Online Property Management service offering.
We aim to reaching profitability in 2021 and are targeting to raise a larger Series B round by that time.
In terms of growth, we have ambitious plans for 2021 and beyond. We'll firstly expand with a capital-efficient set up in our current markets and then selectively open new markets as shown below, with a focus on offering the Full Property Management Model as well as the Online Property management model.
*Based on August 2020 figures in company's unaudited management accounts.
Perks
As investor you are supporting our growth and are part of our journey. To show you our gratitude we will give you 10% of your investment back, as hosting or travel credits - you choose. Apart from becoming one of our investors, we’d love you to join us as a host, a guest - or both!
As a host, you can apply your hosting credits to reduce our fees in the next hosting invoice.
As a guest, when booking a property with us on book.guestready.com, you can use your travel credits towards your stay. We are sure you will have an amazing time in one of our properties.
Please be reminded that credits will have to be used before 31st December 2023 and the maximum credit amount will be EUR 1,000 for an investment of EUR 10,000. Other Terms and conditions may apply.
Please note that any discounts and/or offer listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company's responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Key information
Convertible terms
This investment round is being raised by way of a convertible loan note ("CLN").
The key terms that apply to the convertible are set out below and in more detail in the Key Terms document.
• Interest: 8% per annum accruing daily
• Discount: 20%
• Maturity Date: 24 months from signing of the agreement
• Valuation cap: CHF 96.74 per share, which equates to a pre-money valuation of CHF 22,500,079.42 (this equates to EUR 20,985,148.98 taking the exchange rate of 0.93 CHF/EUR as of 27.10.2020).
• Maturity Date Valuation: CHF 96.74 per share, which equates to a pre-money valuation of CHF 22,500,079.42.
• Trigger events include:
o Qualifying financing: Outstanding principal and interest will convert at the lower of (i) the lowest price per share paid in connection with the Qualifying Funding Round, less the Discount and (ii) the Valuation Cap
o Longstop date: Outstanding principal and any accrued interest will convert at the Maturity Date Valuation share price.
o Event of default: The Company will repay the Investor 125% of the principal amount and will pay the investor any accrued interest then outstanding.
Loans
The company has the following outstanding loans. Funds raised in this round will not be used to pay these loans.
- CHF50k COVID19 loan with repayment in 2024.
- EUR 500k COVID19 loan with repayment starting in May 2021.
- EUR 212k loan with monthly repayment of EUR 9k.
The company also has 411K GBP due to trade or other creditors in the next 6 months for the likes of deferred taxes and social security payments.
Reflected investment
Please note that investment representing CHF 1.5m have been reflected in the campaign using a CHF/EUR exchange rate of 0.95. The funds were received by the company at the start of May 2020.
The Company has also received a further CHF600,000 worth of investments on the same terms as this round, but this has not been reflected in the campaign as it was invested more than 6 months ago.
Share classes
The company has 3 classes of shares - Preferred Shares, Preferred Shares 2 and Common Shares.
- The Preferred Shares have a 1.5x non-participating preference on liquidation and exit, and is held by early investors in the company.
- The Preferred Shares 2 have a 1.25x non-participating preference on liquidation and exit, and will be the class of shares issued on conversion of the convertible loan agreement unless a new, more senior class of shares is in existence on conversion.
- The Preferred Shares and Preferred Shares 2 rank equally in priority of distribution. They also both carry broad-based weighted average anti-dilution rights, i.e. the right to be issued shares at nominal value in the event the company issues shares at a price below the original issue price of the shares (which were CHF 70.96, CHF 159.45 and CHF 201.97 for each of the three rounds in which the preferred shares were issued).
- The Common Shares carry no preference or anti-dilution rights.
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