Proptech Emerald Stay, which Acquires and Grows Vacation Rental Operators, Raises €639K via Seedrs

Emerald Stay, a Proptech that acquires and grows vacation rental operators, has acquired  127% (€639,780) of its €500,000 target via Seedrs from 154 investors (at the time of writing) with 18 days left in the company’s crowdfunding campaign.

Based in Genève, Switzerland, Emerald Stay operates in the Property Mixed (Digital/Non-Digital Mixed B2B/B2C) sectors. Incorporated in May 2017,  the company’s investment summary is as follows:

  • Type Convertible
  • Discount 20%
  • Share price N/A
  • Tax relief N/A

As noted by the firm, the business highlights include:

  • Monthly revenue +240% in December and +600% in January*
  • Cash profitable since November 2021
  • 4 acquisitions under LOI
  • Funding round alongside €3m credit facility from German VC

The company also shared:

“We’re the Proptech that has been managing premium vacation rentals since 2018 in 7+ leisure destinations, both online and on-the-ground. Our technology improves guest experience and optimizes operations, from cleaning to dynamic pricing on 3rd party channels such as Airbnb.”

It’s called “Smart Ownership®.”

They added:

“This earned us the 2021 award for ‘Best Leisure Property Manager’, ahead of US scale ups with hundreds of millions in funding.”

The firm also revealed that there “are 140’000 rental operators globally, 90% of which manage less than 100 homes.” Many of them “have great contracts with homeowners, but lack resources to operate optimally.”

The company further explained that they “acquire such operators and integrate them into [their] technology and operations.” They target “an increase in their earnings of between 40-70%.”

The firm added:

“Through each acquisition of €1m, we aim to add between €8m and €10m to our group valuation. Over the past 6 months, we’ve built a pipeline of 81 qualified targets and engaged 21.”

The company confirmed that they are now executing their first 4 acquisitions.

While sharing their monetization strategy, the firm noted that they “make money by cashing in the margin from operating the homes.” The company shared:

  • Revenue: what guests pay us for their stays in our homes
  • Operating costs:
    • the revenue-share “paid to the owner of the property, minus direct operations costs (- 65-75%)”
    • the fees “cashed in on extra services provided (+5%)”
    • Contribution margin: 30%-40% of revenue

While commenting on acquisitions, the firm noted:

  • We “earn the difference between the pre-integration margin of the businesses we acquire and their post-integration margin.” We target “an increase of 40-70% attributable to optimized distribution, operations automation, economies of scale, and head office synergies.”
  • In addition, we “earn the ‘multiple arbitrage’, i.e. the difference between the margin multiple we acquire the business at and what our consolidated group is valued at given its larger scale.”

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