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Bob W.a short-term premium apartment rental marketplace, has raised €40 million ($43 million) in a Series B funding round.
Founded in Finland in 2018, Bob W bills itself as a “technological hotel operator”, with some 3,000 “apart-hotels” available for rent in 17 European cities, including Amsterdam, Athens, London, Berlin, Madrid and Helsinki .
There is no escaping the myriad of incumbents that have long operated in the space from Bob W, to the American giants. like Airbnb to Europe very clean Booking.com. But there is a somewhat insatiable appetite for variations on the lodging market concept, including hybrid models that combine the benefits of an apartment with the lifestyle associated with that of a hotel.
‘The best of both worlds’
It is in fact from this philosophy that Bob W borrows his name, as it is a contraction of “the best of both worlds”. But unlike the omnipresent Airbnb which allows anyone to offer a room or a friend’s property, Bob W presents itself as a “full-stack hotel operator and brand”. This means that it manages and operates the apartments itself through rental and management agreements, and takes care of the entire experience – with the technology underpinning much of it to help reduce overhead staff costs.
“Our technology allows us to scale like no other: we recently launched two properties in Amsterdam, totaling over 150 apartments in the city, with just four employees,” said Niko Karstikko, co-founder and CEO of Bob W, at TechCrunch. “Compared to a hotel, the number of employees is only a small fraction.”
In addition to guest, cleaner, and operations apps, Bob W has integrations with the “Internet of Things” (IoT) to allow him to manage properties remotely and gain insights on things like temperature, humidity and even noise thanks to decibel detection. sensors.
Guests receive codes through the app to access the property, while an in-app assistant (called “Bob W,” naturally) is available to resolve issues remotely. On top of that, Bob W offers what it calls a “full-service digital marketplace” that connects customers with local businesses, such as bike rentals and gyms, and can create a personalized package based on the customer’s profile and previous activities on the site. platform.
“Our full-stack technology allows us to deliver a comprehensive, user-friendly hospitality offering with far fewer on-site employees, at a practical level of ‘self-driving hospitality’,” added Karstikko.
Bob W. app Image credits: Bob W.
This model, where Bob W prefers commercial properties to residential properties, also means that Bob W is largely immune to growing range of regulations designed to counter the impact of short-term vacation rentals on local communities.
“Short-term rental rules are primarily aimed at accommodation in residential apartments,” Karstikko said. “We operate multi-unit assets intended for professional use, in contexts identical or comparable to those of hotels. As we always operate in accordance with local laws and zoning, we do not run the risks often associated with accommodation in residential apartments.
There are other players offering a similar hybrid proposition, like Spanish Ukio Or Overmoon in the United States. And each of these different platforms has a slightly different value proposition and target market in mind, but the general idea is the same: here’s a nice place to stay with flexible terms, and it’s neither a hotel nor a apartment.
Bob W, on the other hand, doesn’t really have an “ideal” length of stay for stays and ranges from a few nights to several months. Karstikko says more than half of his clients are individuals, but about 40% are actually B2B bookings where a company rents an apartment for business travel or temporary housing for employees relocating for a job .
“Our typical B2B clients are next-generation companies, like large-scale technology companies, startups or creative industries,” Karstikko said.
Sebastian Emberger, co-founder and COO of Bob W, with CEO Niko Karstikko Image credits: Bob W.
Benefit of suites
Perhaps what’s most interesting about the six-year-old company is its growth metrics. Karstikko claims that their revenue grew eightfold in 2022 and tripled again in 2023. Additionally, the company is profitable.
“Despite a three-fold revenue growth in 2023, eight of our 10 markets (countries) were already very profitable, with all markets combined already profitable,” You have Karstikko.
Previously, Bob W had raised around €31 million, and with another €40 million in the bank, the company is well-funded to continue expanding into more cities across Europe – and for the longer term , perhaps even beyond.
“We continue to enter new strategic markets within urban centers across Europe, with our most recent launches in Copenhagen and Amsterdam,” You have Karstikko. “We are also increasing our presence in existing markets. Although our current focus remains on Europe, there will be a time when we begin to look beyond Europe.
Bob W’s Series B round was led by Growth of Evliwith the participation of Flash pointMikko Kodisoja, co-founder of Supercell, and Taavet+Sten — the investment vehicle launched in 2021 by Taavet Hinrikus, co-founder of Wise, and Sten Tamkivi, co-founder of Teleport.
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