Bob W, the premium short-term apartment rental marketplace, has raised €40 million ($43 million) in a Series B round.
Founded in Finland in 2018, Bob W rents around 3,000 aparthotels in 17 European cities, including Amsterdam, Athens, London, Berlin, Madrid and Helsinki, and is a technology-enabled hospitality company. We advertise that we are “operators''.
From US giants like Airbnb to Europe's Booking.com, there's no getting away from the myriad incumbents that have been operating in Bob W's realm for years. However, there is a somewhat insatiable appetite for conceptual variations in the accommodation market, such as hybrid models that combine the benefits of an apartment with the lifestyle associated with a hotel lifestyle.
'The best of both worlds'
This philosophy is actually the origin of Bob W's name, which is short for “the best of both worlds.” But unlike his ubiquitous Airbnb, where anyone can list available rooms and properties, Bob W markets himself as a “full stack hospitality operator and brand.” What this means is that the company manages and operates the apartments themselves through rental and management agreements, and is responsible for the entire experience. Much of this is aided by technology to keep staff costs down.
“Our technology enables unparalleled scale. We recently launched two properties in Amsterdam, totaling over 150 apartments in the city, with just four employees. ,” Bob W co-founder and CEO Nico Calsticco told TechCrunch. “Compared to a hotel, we only have a fraction of the staff.”
In addition to dedicated apps for guests, cleaners, and operations, Bob W integrates with the Internet of Things (IoT) to remotely manage properties and provide insights such as temperature, humidity, and even noise through decibel detection. You can get it. sensor.
Guests will be provided with a code to access the property via the app, and an in-app assistant (dubbed, naturally, 'Bob W') will address any issues remotely. In addition to that, Bob W's offers a so-called “full-service digital marketplace” that connects guests with local businesses such as bike rentals and gyms, and offers personalized services based on guests' profiles and previous activities. You can create a package with platform.
“Our full-stack technology enables us to run compelling full-service hospitality offerings at a practical ‘autonomous hospitality’ level with significantly fewer field employees,” Karstikko added. .
bob w app image credits: Bob W.
This model, in which Bob W. uses commercial real estate rather than residential properties, also means it is largely immune to the ever-increasing regulations designed to counter the impact short-term vacation rentals have on local communities.
“Short-term rental regulations are primarily aimed at hosting in residential apartments,” Calsticco said. “We operate multi-unit assets intended for business use in the same or equivalent environment as hotels. We always operate in accordance with local laws and zoning, so we There are no risks typical of hosting .
There are other players with similar hybrid propositions, such as Spain's Ukio and the US's Overmoon. Each of these different platforms has a slightly different value proposition and target market in mind, but the general idea is the same. In other words, this is somewhere.It's not a hotel or an apartment, so I'm glad that I can stay on flexible terms.
Bob W, on the other hand, doesn't have an “ideal” length of stay, and can range from a few nights to a few months. Karstikko says more than half of his customers are individuals, but in reality, about 40% of his clients are B2B bookings, where companies rent out apartments as temporary accommodation for employees traveling or relocating.
“Our typical B2B customers are next-generation companies such as technology scale-ups, startups, and creative industries,” said Karstikko.
Bob W co-founder and COO Sebastian Emberger and CEO Niko Karstikko image credits: Bob W.
suite profits
Perhaps the most interesting thing about this six-year-old company is its growth metrics. Karstikko says that in 2022, his revenue increased eight times, and in 2023 it increased another three times. Moreover, the company is profitable.
“Even though our revenue has tripled in 2023, eight of our 10 markets (countries) are already highly profitable, and all markets combined are already highly profitable. It has become.” Calstico said.
To date, Bob W has raised approximately 31 million euros and has a further 40 million euros in the bank, giving the company enough capital to continue its expansion into more cities across Europe. We are ensuring.
“We continue to enter new strategic markets in urban areas across Europe, recently opening operations in Copenhagen and Amsterdam.” Calstico said. “We are also strengthening our presence in existing markets. Our current focus remains on Europe, but there will come a time when we will start looking beyond Europe.”
Bob W's Series B round was led by Evli Growth, an investment vehicle launched in 2021 by Flashpoint, Supercell co-founder Mikko Kodisoja, Wise co-founder Taavet Hinrikus and Teleport co-founder Sten Tamkivi Taavet+Sten participated.