Israeli property management company Guesty has raised $170 million in a Series E funding round led by New York-based investment firms Apax Digital Funds and MSD Partners, as well as Sixth Street Growth, a global firm headquartered in San Francisco.
Existing investors Viola Growth and Flashpoint also participated in the round.
Guesty announced on Tuesday that the funds will be used to grow the company’s global operations, offer new solutions for hospitality operators, and secure possible acquisitions. Guesty previously acquired property management platform companies MyVR and YourPorter.
The company’s latest round brings its total raised capital to over $250 million.
Founded in 2013 by Koby and Amiad Soto, Guesty built a software platform for property managers to run their short-term rental listings on popular booking sites like Airbnb, Vrbo, Booking.com, and others. Guesty says 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.”
The company is based in California and has offices in Tel Aviv and New York.
Guesty’s fund-raising round comes amid a tougher investment environment driven by a market downturn that has impacted the global tech industry.
Amiad Soto, who serves as Guesty CEO, said that “despite an exceptionally challenging fundraising climate, the funding Guesty has raised is a vote of confidence in the travel and short-term rental ecosystem” and an endorsement of the company’s journey.
“As alternative accommodations surge in popularity, Guesty has come out a clear winner thanks to our commitment to prioritizing innovation and ability to help our customers become more successful. As we continue to expand globally and grow our market leadership, we look forward to providing hospitality managers with even more value in the coming months and years,” he said in a company statement announcing the Series E round.
Guesty cited a Vantage Market Research published in June that projected exponential growth for the short-term rental industry, from $73.9 billion in 2021 to $99 billion in 2028.
“As alternative property management operations become more complex, Guesty is paving the way for the next generation of digital hospitality services,” said Dave Evans, partner at Apax Digital, in the statement.
Dan Bitar, managing director and co-head of MSD Growth, said that “in a largely specialized and localized industry, there is a huge opportunity to bring a global standard of service and excellence to hospitality operators of all shapes and sizes.” MSD Growth invests globally on behalf of Dell Technologies founder and CEO Michael Dell and his family, as well as other long-term-oriented investors.
“The tech-enabled real estate ecosystem continues to grow and mature, and we look forward to joining Guesty on its journey to democratize and further professionalize the property management space,” said Michael McGinn, partner and co-head of Sixth Street Growth, which has invested in companies like Airbnb and Spotify.
Guesty said it is positioned to reach $100 million in revenues within the next year.