Bob W, the tech-forward hospitality company, has secured €40 million ($43.11 million) in a Series B funding round.
The funding round was led by Finnish venture capital company Evli Growth Partnership, along with growth capital investors and European entrepreneurs, including Supercell’s Mikko Kodisoja, as well as existing investors.
This investment will help Bob W further develop its technology, recruit top talent and expand across Europe, where it currently has full-service aparthotels in 10 countries and 17 cities.
This was the biggest investment so far for Bob W, which earlier raised a total of €22.5 million ($24.25 million).
While there is an increasing demand for locally-rooted, seamless travel experiences, there’s dearth of standards and professional operators in the short-term rental segment who can provide local authenticity, hotel-grade quality and tech to enhance the experience. This is the segment where Bob W is leading, said Bob W Co-founder and CEO Niko Karstikko.
“Our growth and market-leading customer satisfaction prove that we are heading in the right direction. With support from our investors, we’re eager and well-prepared to enter a new phase of our company’s growth,” said Karstikko. “Despite the challenging times in the capital markets, this investment is proof that top-performing companies continue to attract funding. We are thrilled to have these top-tier investors backing us, many of whom are successful entrepreneurs themselves and crucially, our happy customers.”
Bob W’s technological support and apps offer a seamless digital front desk experience, supported by a strong digital customer service. Every Bob W hotel blends an authentic local design and technology, offering the modern comforts of an actual home.
Besides its technological advancements, Bob W is committed to sustainability and actively advocates for transparency and honesty while working to achieve climate net neutrality. The group offsets emissions of every stay.
In November 2023, Bob W launched the ‘Show Us Your Numbers’ campaign and shared its greenhouse gas emissions per guest night to create a benchmark in environmental reporting, while challenging the hospitality industry to reveal its actual carbon footprint.
As per its latest sustainability report, Bob W said it emitted 29 kg (CO2-eq/guest night) of carbon emission per guest night in 2022. This figure surpasses the average hotel’s emission of 40 kg (CO2-eq/guest night) in 2021.
The latest figure is also less than the 41 kg reported by the company in 2021 when it had surged due to an expansion, which saw an eight-fold expansion of Bob W’s apartment portfolio in one year.
“Commitment to sustainability is at the core of our mission. We consider measuring and reducing our carbon footprint is a fundamental aspect of our business, and the principles penetrate our procurement practices, operations, and how we work with property owners. We are pushing the industry to follow suit. Consumers deserve the facts laid bare,” said Karstikko.