Hometime, a property management startup based in Sydney, has raised $6.7 million to strengthen its position in the Australian market amid the growing trend of short-term letting. The latest round of funding was led by NAB Ventures and AS1 Capital, and comes after the company secured $6 million in combined debt and equity funding in May 2022. Hometime has also acquired two similar Australian businesses to consolidate its presence in the short-term letting space. The startup manages properties rented through platforms like Airbnb and has a marketing partnership with the platform. It operates in eight cities across Australia and Auckland, and recorded 300% growth in revenues in the 12 months leading up to October 2019. Hometime is expected to generate annual revenues of between $13 million and $14 million by the end of the year.
A scale game
The past year has been marked by an intense fundraising period for Hometime, as the startup seeks to drive growth and expand its market presence. Despite the challenges and pressures that come with securing funding, co-founder William Crock emphasizes the importance of being well-capitalized for future endeavors. Hometime, which provides guest services to vacation rental properties, is not a typical software-as-a-service company. Instead, its focus is on delivering a top-tier customer experience. Maintaining consistency across all of the different areas where Hometime operates can be a challenge, but the company has invested heavily in its people, providing them with the tools, training, and incentives necessary to deliver outstanding service. By empowering its staff in this way, Hometime has been able to achieve rapid scalability and attract interest from institutional investors seeking to capitalize on the growing demand for vacation rentals globally.
Ears to the ground
The founder of Hometime, William Crock, is keeping a close eye on global trends in short-term property rental management, especially consolidation, which is becoming more common due to a young and fragmented industry. He sees the lack of well-capitalized players in Australia as an opportunity to continue to acquire local businesses. Hometime has already acquired Host My Home and Bnbpal and is planning more activity in this area in the next 12 months. Crock plans to invest in the technology platform to manage any upcoming integrations and drive international growth. The company plans to enter either the UK or US market in 2020. While open to takeover bids, Crock wants to focus on building a fantastic business from a unit economics perspective and demonstrating growth.
A New giant in Aussie
Hometime’s founder, William Crock, advises startups to double their time estimates when seeking funding, noting that fundraising can take longer than expected. He warns that founders who believe that additional funding rounds will become easier are wrong, as deals tend to become more complex as investors become more sophisticated. Despite this, Crock is optimistic about Hometime’s growth potential and believes that the business can become a major Australian player in the short-term property rental management industry, as there is still room for scale and technology in the relatively young and fragmented market.
