Habyt, one of the world’s leading flexible housing providers, has raised €40 million in a series C round as it expands globally and consolidates its market share. This round is led by the new investors Korelya Capital and Deutsche Invest. It was also participated by new investors Exor Ventures, Endeavor Catalyst, and existing shareholders P101, ITALIA500-Azimut, HV Capital, Vorwerk Ventures, Norwest, Kinnevik, Burda Principal Investments, and Inveready.
Since its series B in 2021, Habyt has strengthened its position as the world’s main flexible housing company in a chain of mergers and acquisitions, and has broken into North America and Southeast Asia markets. In 2023, Habyt acquired a key player in the North American market – Common Living, adding to its earlier 2022 acquisition of Hmlet. Habyt has grown from 5,000 units in 18 cities last year to 30,000 units across 50+ cities in three continents. In 2023, it saw a net revenue increase of over 40%, and is profitable in most key geographies with group level profitability targeted for early 2024.
Luca Bovone, CEO of Habyt, commented: “We are breaking barriers and aim to enable easy access to housing, allowing anyone to embrace flexible living anywhere in the world. We have seen exponential growth and raised a significant series C with support from existing and new investors, despite a drop in series C rounds across the board this year.”
Giuseppe Donvito, Partner, P101, added: “We’re proud to be part of Habyt’s mission to revolutionize the flexible housing market. Habyt offers a fresh approach to addressing the global housing challenge, catering to the needs of a growing segment of young professionals living on the go. The demand for such solutions has been surging over the past few years, and we expect this trend to only strengthen over time.”
Many young people across the world are currently struggling with a critical lack of housing as demand vastly outstrips supply and mortgage interest rates are sky-high. At the same time, there are 35 million digital nomads globally for whom simple, flexible solutions offer a way around restrictive local renting laws. With 70% of Habyt’s clients being internationals relocating for study or work, and 30% local citizens, the company is creating the rental experience of tomorrow by standardizing the housing process with a digital-first approach, offering high-quality, flexible living options for travelers, locals, and professionals. Habyt’s diverse selection of co-living, homes – and now, hotels, gives people the convenience and flexibility to unlock their next move, and settle into different cities on their own timescale, with minimal admin. All of the company’s flats come fully furnished and equipped for a comfortable lifestyle, making it the easiest housing solution on the market.
Franco Danesi, Partner, Korelya Capital and Habyt Board Member, said: “Habyt is solving the ever-growing global problem of access to housing with a digital-first solution appealing to young local families and mobile professionals alike, while offering real estate developers and investors an innovative and compelling product. What truly excites me is Habyt’s unparalleled global footprint with significant presence in the US, Europe and Asia. We believe in Habyt’s bold vision of redefining the world of flexible housing, and we are keen to support them on their journey by facilitating access to attractive geographies such as Asia.”
2023 has been one of the most significant years for Habyt since its founding in 2017 by Luca Bovone. As well as its critical acquisition of Common, Habyt completed a company-wide rebranding by world-renowned agency DesignStudio to reflect Habyt’s truly global brand and unite all products under one umbrella. The company also opened its first hotel in Europe – The Waterfront in Berlin, Germany – for short-term housing and vacation stays, which was fully booked days after opening. The company’s portfolio saw expansion across all three continents. Canada became a new market, with 10,000 further units in the North American pipeline, and the Southeast Asian division is looking to expand to neighboring countries and double its portfolio in Hong Kong and Singapore over 2024. In Europe, Habyt had openings in Germany, France and Austria, among others, adding further 1,050 units to the portfolio in 2023, and expects to further grow in 2024, entering the UK among other new markets.
Armin Weiland, Managing Director, Deutsche Invest and Habyt Board Member, added: “In just a few short years, Habyt has embarked on an incredible journey of growth and expansion, and managed to thrive in one of the most challenging startup climates we’ve seen for years. With the current momentum and remarkable net revenue increase, a trajectory to profitability in 2024 is the next clear big goal with an ongoing focus on unit economics and the profitability of each asset.”
With its new round of funding, Habyt aims to continue expanding its portfolio entering new markets, further developing ESG initiatives, and enhancing tech-driven solutions to meet the evolving needs of residents, making renting with Habyt even easier. Company’s customers will see multiple updates in the mobile App unveiled in the near future and a refined browsing and booking experience for an even smoother onboarding.
Read the orginal article: https://www.eu-startups.com/2023/10/berlin-based-flexible-housing-provider-habyt-raises-e40-million-series-c-to-become-profitable-in-2024/
