Mews, the Amsterdam-based hospitality cloud platform, recently secured a $110 million funding round, propelling it to unicorn status with a valuation of $1.2 billion. While the funds will play a pivotal role in propelling Mews towards global expansion, research and development initiatives, and strategic acquisitions, this remarkable achievement wasn’t an overnight success, but rather the culmination of several key factors.
While quite of lot of cloud platform has been coming up in the market serving different industries, there are few which we saw in the past that have secured good fundings. One such platform is Codesphere cloud platform which has revolutionised how new startups create and scale their web apps. Yet another one is OVO Automotive which raised $3.5M for its safety-first cloud platform to stream content on connected vehicles back in 2022.
Well, this is a story of Mews which recently became a unicorn startup and here are a few things we think that contributed in making it a unicorn startup.
1. Addressing a critical industry need
Mews’ story begins in 2012 with Richard Valtr, a former hotelier who witnessed firsthand the limitations of the hospitality industry’s reliance on legacy, on-premise technology. He recognized the need for a cloud-based platform that could streamline operations, enhance guest experiences, and unlock new possibilities. This vision resonated deeply with hoteliers struggling with outdated systems that were clunky, expensive, and unable to adapt to the evolving demands of the digital age.
2. Building a robust platform and cultivating trust
Valtr embarked on his mission, assembling a team of passionate individuals to develop Mews, a comprehensive hospitality cloud platform. The platform offered a suite of features, including property management systems, booking engines, payment processing tools, and integrations with various hospitality applications. By providing a centralised, user-friendly platform, Mews addressed several pain points for hoteliers:
- Reduced operational costs: Cloud-based solutions eliminated the need for expensive hardware and software licences, offering a more cost-effective alternative.
- Improved efficiency: Streamlined workflows and automated processes saved time and resources for staff, allowing them to focus on delivering exceptional guest service.
- Enhanced guest experiences: Mews allowed hoteliers to personalise guest journeys, offer self-service options, and cater to evolving customer expectations.
3. A strategy of growth and innovation
Mews understood that growth and innovation were crucial for success. The company focused on several key strategies:
- Organic growth: Mews’ robust platform and positive customer reviews led to organic growth as satisfied hoteliers recommended the platform to others.
- Strategic acquisitions: Mews strategically acquired eight hospitality companies, including Frontdesk Anywhere, Hotello, and Nomi. These acquisitions not only expanded their customer base but also allowed them to integrate new technologies and functionalities, further strengthening their platform’s capabilities.
- Global expansion: Recognizing the potential of international markets, Mews strategically expanded its reach beyond Amsterdam, catering to a wider range of customers and establishing itself as a global player.
- Constant innovation: Mews prioritises research and development, continuously improving its platform with new features and functionalities. This commitment to innovation ensures that Mews remains at the forefront of the hospitality tech landscape.
4. Building trust and attracting investors
Mews’ dedication to solving critical industry problems, impressive growth trajectory, and commitment to innovation did not go unnoticed. The company earned the trust and confidence of leading investors such as Kinnevik and Goldman Sachs. These investments provided Mews with the necessary financial resources to fuel its growth, expand globally, and continue its quest to reshape the hospitality industry.
What we think about Mews
Mews’ journey from a young startup to a unicorn is a testament to its vision, execution, and commitment to building a better future for the hospitality industry. The company continues to innovate and evolve, offering cutting-edge solutions that empower hoteliers to deliver exceptional guest experiences. As the industry continues to embrace technology, Mews is well-positioned to remain a leader in the hospitality tech space, shaping the future of how hotels operate and how guests experience the world.
Mews’ journey offers valuable lessons for aspiring entrepreneurs:
- Identify a critical need: Address a real problem faced by your target audience.
- Develop a compelling solution: Offer a product or service that is innovative and solves the identified need effectively.
- Focus on growth: Develop strategies for organic and inorganic growth to expand your reach and customer base.
- Embrace innovation: Continuously innovate and improve your product/service to stay ahead of the curve.
- Build trust and partnerships: Cultivate trust with customers and partners to gain the support and resources needed for success.
Mews’ journey to becoming a unicorn is a testament to its focus on solving a critical industry need, impressive growth trajectory, strategic acquisitions and partnerships, commitment to innovation and expansion, and the confidence shown by investors. As the hospitality industry continues to evolve, Mews is well-positioned to remain a leader and shape the future of the sector.
