Germany's Arbio locks in €31.1M to tackle issues in vacation rental management

Germany’s Arbio, which is pioneering a new approach to the multi-billion-euro holiday rental market, has secured funding from various investors.

Berlin-based Arbio, an AI-first property management system for alternative accommodations, has secured $36M (approximately €31.1M) in a Series A funding led by Eurazeo.

Based out of Paris, Eurazeo is a private equity and venture capital firm that invests in SMEs and manages a diversified portfolio of assets.

Elise Stern, Investment Director at Eurazeo, says, “Arbio is pioneering the AI-native model in one of Europe’s largest and least digitised service sectors. By combining technology, data, and operational excellence, they’re redefining what property owners and guests can expect. We believe Arbio will become the category leader in the multi-billion-euro holiday rental management space, and we are excited to support them in this ambition.”

The latest funding round brings the company’s total funding to over $45M (approximately €39M).

Investors include London-based AI-focused VC OpenOcean and previous investors Atlantic Labs and leading angels Philipp Freise and Justin Reizes (KKR), Johannes Reck and Tao Tao (GetYourGuide) and Din Bisevac (Buena), amongst others, also participated. 

The funding will speed up the company’s acquisition plans, improve its AI technology, and help expand into new European markets.

What does Arbio solve?

The German company is planning to focus on where vacation rental management is disorganised and owners need better support.

There are more than 6.5 million alternative accommodation properties in Europe, but managing them is outdated.

Property owners deal with unpredictable returns, ongoing problems, and bad reviews, while guests face inconsistencies.

Traditional property managers say they can help owners manage their properties using old software, but this creates an inefficient solution.

Arbio: AI-first property management system

Founded by childhood friends Constantin Schröder and Paul Bäumler, Arbio emerged from their own frustrating experiences as Airbnb travellers across the globe.

Arbio is an AI-first property management system for alternative accommodations.

Arbio is building an AI-native operating system that acts as a full-stack property manager.

It automates distribution, accounting, operations, guest communications, and dynamic pricing, delivering higher revenues, lower costs, and peace of mind for owners.

On the other hand, guests benefit from personalised stays, faster responses, and standardised quality.

Currently, the company already manages over 1,000 properties across Germany and Austria.

The company has over 1,000 units managed in the DACH region, experienced 10x revenue growth in the past two years, and completed more than 30 strategic acquisitions through its M&A team.

Constantin Schröder, Arbio co-founder and CEO, says, “Starting as operators ourselves, we’ve felt where the real pain for operating and managing holiday rentals lies. Therefore, at Arbio we get extremely excited about leveraging AI to change the fundamentals of a traditionally messy, service-heavy sector. With our involvement in existing holiday property managers we’re very particular about how we believe building and rolling out our platform delivers the highest value to home owners, so that ultimately travellers have a wonderful time exploring new places.”