MadeComfy, a company that manages short-term rentals for homeowners and lists them on platforms such as Airbnb, has secured a $6 million investment from Investec, a South African wealth group. The investment comes at a time when the New South Wales government is on the verge of regulating Airbnb after a hiatus of three years.
MadeComfy earns a commission of 20% or more for its services. According to David Phillips, the head of emerging companies at Investec, this is the second time the company has invested in a “derivative” of a major sharing economy player.
In 2022, Investec had invested $3 million in Splend, an Australian startup that leases vehicles to Uber drivers.
Mr. Phillips stated, “We are confident that the sharing economy will persist and expand.” He added, “Since we overlooked the opportunity to invest in Airbnb, we are pleased to participate in MadeComfy.”
Collaboration with real estate agencies.
According to Mr. Phillips, the newly acquired capital would allow MadeComfy to expand to other cities, regional areas, and potentially overseas. The company presently manages around 500 properties in Sydney and has secured close to 100 properties in Melbourne since expanding to the city in November.
By 2020, MadeComfy aims to manage 3500 properties overall, with plans to expand to Brisbane. MadeComfy’s co-founder, Quirin Schwaighofer, expressed that the company is well-prepared for any future regulatory changes in Sydney.
MadeComfy’s partnership with real estate agents has been one of the company’s biggest growth areas. The company has collaborated with Raine & Horne’s Dee Why branch and Belle Property agencies in Mosman and Neutral Bay to provide home management services to landlords who want to rent out their property on Airbnb.
Expectations of Accommodations Rise Among Guests.
MadeComfy is also collaborating with hotels, such as the Ovolo hotel in Darling Harbour, to provide better services to guests who book through MadeComfy.
Mr. Schwaighofer noted that the expectations of Airbnb guests have risen, and the company is adapting by focusing on clean, uncluttered homes with good communication.
Investec’s $6 million investment will make it the largest minority shareholder in MadeComfy, with co-founders Sabrina Bethunin and Quirin Schwaighofer retaining the majority stake.
Last year, the company raised $1.1 million from notable investors, including former LinkedIn Australia CEO Cliff Rosenberg. Investec’s emerging companies division targets startups with turnovers between $10 million and $200 million and has invested in twelve Australian startups in the past three years.
