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Chronicles

The story behind the story

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Mews, which offers cloud-based hotel management tools, raised $110M led by Kinnevik at a $1.2B post-money valuation; the company says it's not yet profitable

Ingrid Lunden / TechCrunch :

TechCrunch Ingrid Lunden

Context & Ripple Effects

Mews follows its 2022 Series C, when it raised $185M at an $865M post-money valuation. The move to a $1.2B valuation in this round shows continued investor support for its hotel-operations software even as the company says it has not reached profitability.

The financing also precedes Mews's later $300M AI-powered hospitality software round at a $2.5B valuation, while adjacent hotel-data vendor Lighthouse also attracted a large growth round for hotel demand and pricing tools. Together, the coverage shows capital concentrating around software that runs or informs hotel operations.

First-order effects

  • Mews gains $110M of additional financing and a $1.2B post-money valuation, extending its capacity to invest in its cloud hotel-management platform.
  • Kinnevik becomes the lead backer of a company whose valuation has risen from the 2022 $185M Series C, despite Mews remaining unprofitable.

Second-order effects

  • The round raises the capital and valuation benchmark for hotel-software peers, including booking, property-management, and market-intelligence providers competing for hotel technology budgets.
  • Because profitability has not yet arrived, Mews will face pressure to turn additional product investment into durable customer adoption and operating leverage rather than relying solely on valuation growth.

Third-order effects

  • If follow-on financings continue to favor broad hotel operating platforms, hospitality technology may consolidate around vendors able to combine property management, reservations, and newer automation capabilities.
  • The pattern suggests investors are willing to fund category leaders through losses, but future financing terms will increasingly depend on evidence that cloud hotel software can scale toward profitability.

The trend: Hospitality software is attracting growth capital around cloud platforms that can become the operational system of record for hotels.

Discussion

  • @batteryventures @batteryventures on x
    Congrats to @MewsSystems on hitting unicorn status! 🦄 🎉 We're proud to partner with such a disruptive force in the hotel tech space. https://techcrunch.com/...