Stellar customer ratings and over $1bn under management - that’s rental management done right!
|Sectors||Travel, Leisure & Sport Mixed Digital/Non-Digital Mixed B2B/B2C|
|Incorporation date||17 May 2016|
- 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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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
• Launched in 6 cities on 2 continents, raised a €640K Angel round
• Raised a €2.7M Seed round led by Impulse VC
• Released our host dashboard where hosts can see bookings and invoices
• 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
• 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
• 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
• 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
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.
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.
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.
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.
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-....
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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