PSG leads $175m financing of vacation rental platform Hostaway

• Founded in 2015, Hostaway automates and simplifies the process of property management
• It plans to use the financing’s proceeds to propel growth, expand globally, increase headcount, strengthen customer service, enhance on-boarding processes, and pursue both organic and inorganic opportunities
• PSG invests in software and technology-enabled services companies

US growth equity firm PSG led a $175 million financing of Hostaway, a Toronto-based all-in-one vacation rental software and management system.

Founded in 2015 by Marcus Rader, Saber Kordestanchi and Mikko Nurminen, Hostaway automates and simplifies the process of property management, helping property managers scale and grow their businesses. In a statement, the company said it increased revenue by more than 10x since 2021 and achieved strong profitability.

Today, Hostaway customers collectively manage more than 100,000 properties in over 100 countries.

Hostaway plans to use the financing’s proceeds to propel growth, expand globally, increase headcount, strengthen customer service, enhance on-boarding processes, and pursue both organic and inorganic opportunities.

“We are impressed with the quality of the Hostaway team, their vision and execution in building what is, in our view, a highly differentiated category leader with multiple levers of value creation,” said Edward Hughes, a managing director at PSG. “We believe the company has a significant opportunity to lead this industry, as it continues to scale its integrated platform, expand globally and help its customers meet the growing demand in the short-term rental market.”

With offices in Boston, Kansas City, London, Paris, Madrid and Tel Aviv, PSG invests in software and technology-enabled services companies. To date, it has backed more than 120 businesses and facilitated over 450 add-on acquisitions.

Vista Point Advisors served as the exclusive financial advisor to Hostaway.