Staykeepers is a technology platform connecting quality accommodation with short term & mid term guests
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.staykeepers.com/ |
| Sectors | Travel, Leisure & Sport Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 12034575 |
| Incorporation date | 5 Jun 2019 |
Investment summary
Business highlights
- Operational in 57 cities across the UK
- Total portfolio of our clients is 200,000 units
- More than 250,000 nights booked using the platform
- 286% revenue growth between Jan and July 2021*
Idea
Introduction
Staykeepers is one of the UK’s leading property technology companies with a focus on short, mid and long term rental management. Staykeepers is presently active in over 57 cities around the UK working with some of the biggest Student Accommodation providers in the nation.
Our mission is to connect quality accommodation with guests and travellers across the world in an ultra flexible way. We source our properties from institutional landlords (Student Accommodation providers and Build to Rent (BTR) operators) and then rent these properties to tenants and guests. We provide a turnkey (360 degree) solution to our clients.
Staykeepers’ software grants student accommodation providers and Build to Rent operators, quick access to detailed information about the occupancy of their buildings–listings, reservations and revenue performance.
Substantial accomplishments to date
2019
- Bootstrapped the company using a bottom up approach
- Built overseas customer support team
- Developed well defined business processes
- Built in-house technology team
- Developed integrations with the major travel platforms across the globe
- Focused towards B2B and serving the institutional landlords segment in the UK
- Introduced and deployed Objective and Key Result (OKR) methodology across the organisation
- Started working with international travel student agencies
2020
- Raised £500,000 venture debt along with an option agreement. Please read the key information for further details on this
- Adapted towards the Covid pandemic successfully and adjusted our value proposition towards the current needs of the travel market
- Changed Revenue Management strategy and as a result achieved 20+ days average length of stay and maintaining 70% occupancy rates across the short let portfolio
- Introduced Long Term Let proposition towards Institutional Landlords
- Developed a working relationship with AirBnB
- Focused towards B2B and serving institutional landlords
2021
- Expanded to 57 cities across UK
- Total number of customer portfolio marketed reached 60,000 available units
- Achieved integration with few of the biggest long term let platforms in the UK, Spain and Germany
- Built a team of 84 people from 12 nationalities, speaking 13 languages
- Staykeepers has grown its revenue 286% between Jan and July 2021*
*Based on unaudited management accounts
Monetisation strategy
Currently we offer three types of services outlined below:
1) Do It Yourself - We do the advertisement and the client handles the rest. In return Staykeepers receive 15% of the total revenue (in addition to the cleaning fee which equates to 12% from the total revenue) - 15% contribution margin
2) The second option is Full service - We take care of everything (advertising the property as well as onsite and offsite operations) in exchange for 20% - 53% contribution margin
3) Long Term Referral Model - we provide students / tenants to our clients in exchange for 3.5% sourcing fee - 69.8% contribution margin (forecasted)
Use of proceeds
1) Establish a stronghold into our existing markets whilst we maintain and accelerate our growth in other locations
2) Substantial investment into product architecture and technology allowing us the capability to efficiently scale operations
3) Build integrations with our technology stack and improve and enhance our value proposition
4) Complete the Leadership Team
Our outlook for 2021 is quite ambitious. Apart from further expansion in current markets, we aim to raise another investment round.
Key information
Loans
Please note that the company has £172k loans outstanding. These are across a number of lenders and are broken down as follows:
The funds raised as part of this round will not be used to pay these loans.
Option agreement and venture loan
In January 2020 the Company raised £500k as a secured venture loan from Prefcap (the “Loan). In addition to the Loan, Prefcap holds an option agreement for shares in the Company.
Venture Loan
- The Loan is secured against the assets of the Company and Win Win Lettings.
- The Loan accrues interest of 10% per annum, with default interest payable at 20% in the event the Company fails to make a repayment in accordance with the terms of the agreement.
- On 10th January 2022, the outstanding Loan and accrued interest will be redeemed by Prefcap unless it opts to set off the outstanding loan balance in exercising the Option (see below) into equity.
- If an event of default (e.g. insolvency, breach of agreement, Founder departure etc) or an Exit (which includes a sale of 25% of more of the Company or 25% of Founder held shares) occurs while the Loan remains outstanding, Prefcap may demand immediate repayment of the Loan and accrued interest by written notice to the Company.
- The Company is entitled to redeem the Loan in up to four instalments. If the Company redeems the Loan in the first year then the loan amount plus the interest that would have accrued had the Loan been held for one year will be due. If redeemed in the second year, then the Loan amount plus the interest that would have accrued had the Loan been held for two years will be due.
Option Agreement
- The option period is until 10th January 2030.
- The agreement gives Prefcap the option to buy 37,217 Ordinary B Shares in the Company at a share price of £13.4347, subject to certain adjustments, at any time during the option period (the “Option”).
- For the purposes of calculating the consideration payable by Prefcap on exercise of the Option, the agreement entitles Prefcap to net off any dividends which would have been payable had the Option been exercised in full prior to the declaration of the relevant dividend.
- The Option agreement also provides for anti-dilution protection in the event of any share capital adjustment event or issue of shares at a down-round .
- A "slow growth adjustment" took place in January 2021, which has increased the number of shares that can be bought with the option to 75,974, therefore reducing the conversion share price to £6.58. A further adjustment is possible in the event of a "Low Value Sale" where the company exits at a valuation of less than £10M .
Win Win Lettings
At the time of the last investment round led by PrefCap, some of the commercial contracts and IP relating to Staykeepers' strategy were held under Win Win Lettings Ltd (WWL). A condition of the round was to bring all IP and contracts relating to this strategy under the Company. As it would take time to novate the contracts and so as not to delay the investment, PrefCap sought security across both entities. WWL no longer holds any commercial contracts or IP relating to Staykeepers as these have now been assigned to the Company.
WWL continues to provide on the ground services to the Company such as cleaning and guest meet and greet. The Company has an exclusive licence with WWL for these services and owns all of the IP relating to these services.
The Company intends to build relationships with a large network of on the ground service companies in order to provide wider coverage across geographies.
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