Hotel SaaS Startup Mews Secures $110M Funding, Valued at $1.2B

The global tourism industry, rebounding from the effects of COVID-19, achieved impressive results in 2023, generating $2.23 trillion in revenue globally. This surpasses pre-pandemic levels for the first time since 2020, indicating a significant recovery. In light of this, startups catering to the sector are experiencing a positive impact. Notably, Mews, a startup specializing in tools to enhance IT management for hotels, has secured $110 million in a growth round. This funding is aimed at further expanding its business in response to the resurgence of the tourism industry.

Mews has successfully secured funding in a round led by Kinnevik, valuing the company at $1.2 billion post-money. This represents a slight increase from its Series C round in late 2022 when it raised $185 million at an $865 million valuation. While Mews has confirmed its current lack of profitability, its growth is evident. The Amsterdam-based company provides SaaS tools catering to hoteliers, covering various aspects such as front-desk check-in, payments, reservations, and housekeeping management. Notably, its gross payment volume has surged to $8 billion from $2.3 billion at the end of 2022.

Mews reports a significant increase in its customer base, boasting over 5,000 hotel customers compared to 3,253 hotels just a year ago. The company has not only gained traction among independent hoteliers but has also secured crucial partnerships with larger chains, including Accor, Generator-Freehand, The Strawberry Group, The Social Hub, and Airelles. As part of its strategy to achieve profitability, Mews is actively pursuing economies of scale. The startup has strategically acquired eight other startups in the hotel IT space, including notable acquisitions like Frontdesk Anywhere, Hotello, and Nomi.

In 2022, Mews’ founder and president, Richard Valtr, expressed the company’s strategic vision to broaden its customer base beyond hotels. Inspired by the “Airbnb effect,” where private properties serve as temporary accommodation alternatives, Mews aimed to extend its tools to a wider range of customers, potentially including private properties and other forms of temporary accommodations.

Richard Valtr, Mews’ founder and president, articulated the company’s self-perception as a platform integral to businesses in its vertical. Mews adopted a broad approach to its ambitions, acknowledging that while it nominally focuses on hotels and hospitality, its tools could extend to hostels, Airbnbs, and services within mixed-use real estate. Valtr emphasized a long-term perspective, envisioning the melding of what is traditionally considered commercial or residential real estate. Post-pandemic shifts revealed an increasing desire for individuals to integrate their travel experiences more seamlessly into their everyday lives.

As of today, Mews has expanded its offerings to include tools designed for serviced apartments. However, the company has not ventured into further expansion within the residential market or extended its services to cover commercial properties. The focus appears to be more concentrated than ever on the hotel sector specifically.

Mews CEO Matt Welle highlights the significant opportunity to assist hoteliers in streamlining their operations as they increasingly adopt modern technology. This strategic focus aligns with current investor preferences, where there’s a trend of reducing the number of growth rounds in Europe, with investors seeking more assured bets and exits among the rounds they engage in.

The Series D funding round of $110 million for Mews attracted participation from notable investors, including Kinnevik, Revaia, Goldman Sachs Alternatives, Notion Capital, and new investor LGVP. Alexander Lippert, Managing Director in Growth Equity at Goldman Sachs Asset Management, highlighted Mews’ transformative impact in supporting innovative hospitality brands globally, especially as cloud adoption accelerates in the $15.5 trillion global travel and tourism industry.