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GuestReady

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Stellar customer ratings and over $1bn under management - that’s rental management done right!

334%
 - 
Funded 3 Sep 2021
€1,000,000 target
€3,365,920 from 1,083 investors
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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
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Investment summary

Type Convertible
Discount 10%
Share price N/A
Tax relief N/A
Co investor Impulse

Impulse VC provides funding and operational support to exceptional technology companies. We work across all industries but are primarily focused on proptech, adtech, B2B SaaS, and marketplaces.

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Business highlights

  • Operational in 30+ cities across Europe, the Middle East
  • Sold 1,500,000+ guest nights generating rental income of €60M+
  • Portfolio of more than 2,500 properties, worth over €1BN
  • EBITDA positive in Jul. 2021*, and top rated (4.8/5) by customers
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Key features

  • Secondary Market
  • Seedrs nominee min. €10.00 +
  • Idea
  • Key information
  • Team
  • Updates
  • Investors 1,083
  • Discussion
  • Documents

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 30 cities around the world, including cities such as Paris, London, Lisbon, and Dubai.

Our mission is to become the world's leading tech-driven accommodation 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 €640K Angel round

2017
• Raised a €2.7M Seed round led by Impulse VC
• Released our host dashboard where hosts can see bookings and invoices

2018
• 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

2019
• Acquired France and Portugal based competitor BnbLord
• Raised €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
• Released our PMS as white-labelled solution to third party property managers

2020
• Expanded operations to Switzerland
• Awarded Rising Star at the Shortyz Awards
• Reached over 1,200,000 cumulative guest nights sold
• Released automated payment processing via virtual wallets
• Raised €2.4M on Seedrs, the largest Swiss campaign ever on Seedrs

2021
• Reached EBITDA profitability in July 2021
• Generated over €60M in cumulative booking value
• Reached over 1,600,000 cumulative guest nights sold
• Acquired The Porto Concierge, the market leader in Portugal
• Selected as one of the finalists in the Swiss Economic Awards
• Grew direct bookings dramatically by 740% from July 2020 to 2021
• Reached 2,600 properties managed, estimated to be worth over €1BN
• Top-rated (4.8/5) by hosts and guests on Trustpilot from 1000+ reviews
• Achieved a record in Aug 2021 of +10K bookings, 452% of Jan 2021

Monetisation strategy

Our first business model is called Full Property Management. We take a commission on the rental income plus a cleaning fee paid by the guest, together they add up to around 28%* of rental income.

Since 2019, we are offering a SaaS version of our property management system (PMS) to third party property managers at a commission of ca. 2-3% of their rental revenues.

In addition to the Software-only business model, we also offer Online Property Management services such as guest communications or revenue management, increasing our revenue share to around 6-8%.

The detailed services included in each business model can be seen below.

We're also building a direct booking channel on which we charge additional channel fees. This fast-growing revenue stream adds to our top and bottom line.

All our business models have attractive gross margins which we've been increasing year on year.

Increasing revenues and relatively stable fixed costs have led us to become more profitable every year.

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.

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 are at a historic moment where we're expecting the biggest travel rebound in a century. This brings tremendous growth opportunities for GuestReady.

We have ambitious plans for 2022 and beyond for which we are targeting to raise a larger Series B round. 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 unaudited management accounts.

Key information

Convertible key 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.

• Discount: 10%

• Maturity Date: 24 months from signing of the agreement

• Valuation cap: CHF 60,000,000

• Maturity Date Valuation: CHF 48,000,000

• Interest: N/A

• Trigger events include:
o Qualifying financing of at least CHF 4,000,000: Outstanding principal 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 will convert at the Maturity Date Valuation share price.

o In the event of default the outstanding principal amount will be due and repayable to loan note investors.

• Upon a qualifying financing round or on the longstop date the loan will convert into the same class of shares issued in the round or into a new class of shares which will benefit from at least the same rights as Preferred Shares 2, which carry a 1.25x non-participating preference.

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.

Loans

The company has EUR 701k worth of outstanding loans, set out as follows:

- Bank loan of 200k - Feb 2019 with an outstanding balance of EUR 29,914 accruing interest of 1.49% and due to be repaid on 03/01/2022
- Bank loan of 75k - Jul 2019 with an outstanding balance of EUR 40,223 accruing interest of 1.4% and due to be repaid on 08/03/2022
- Bank loan of 75k - Dec 2019 with an outstanding balance of EUR 50,701 accruing interest of 1.4% and due to be repaid on 12/06/2023
- Bank loan of 500k - April 2020 with an outstanding balance of EUR 500,000 accruing interest of 0.75% and due to be repaid on 17/04/2026
- Covid Loan with an outstanding balance of CHF 50,000 accruing interest of 0 and due to be repaid in 2025.
- Credit Agricola 1 with an outstanding balance of EUR 4,144 accruing interest of 3.5% and due to be repaid on 30/09/2021. The repayment period end and repayment amounts are expected to be negotiated.
- Credit Agricola 2 with an outstanding balance of EUR 11,334 accruing interest of 3% and due to be repaid on 30/09/2021. The repayment period end and repayment amounts are expected to be negotiated.
- Credit Agricola 3 with an outstanding balance of EUR 15,181 accruing interest of 3.5% and due to be repaid on 30/09/2021. The repayment period end and repayment amounts are expected to be negotiated.

The company also has EUR 424K due to trade or other creditors in the next 6 months for the likes of deferred taxes and social security payments.

Funds raised in this round will not be used to repay these loans.

Outstanding convertibles

The company has previously raised EUR 3,015,773 through convertible loans which may convert to equity after this round and dilute existing shareholders. The terms for this can be found on the company's previous Seedrs campaign - https://www.seedrs.com/guestready/sections/key-....

Reflected investment

Please note that investment representing CHF 868k has been reflected in the campaign using a CHF/EUR exchange rate of 0.92.

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from Convertible

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a convertible campaign allows you to invest today, with your investment converting into equity in the future, at a discount compared to other investors.

Learn more about pitch type on Seedrs

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This shareholding type is available and the minimum investment required to select it.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.