Short-stay rental platform Airbnb is acquiring Scottish proptech company Letting Cloud for an undisclosed amount.
Founded in 2019 by CEO Grant MacCusker, Letting Cloud provides a platform for more than 5,000 estate agents to promote their short-term, long-term and holiday rentals.
The Edinburgh-based company verifies its landlords by cross-referencing details with the Scottish Landlord Register. The Scottish Government recently changed its legislation on short-term holiday lets, which requires hosts to apply for a specific licence.
MacCusker said that Airbnb was attracted to Letting Cloud’s “software behind the main website which conducts all the verification checks required to complete a successful let”.
He added: “To be honest it hasn’t really sunk in yet!”
Letting Cloud says it has approximately 500,000 properties listed on its site. Before Airbnb’s acquisition offer, MacCusker said Letting Cloud was exploring a potential £6m seed round and alternative acquisition offer from the US.
“We were attracted by the array of interesting problems being tackled by Letting Cloud, and how they were addressing them using modern and emerging technology,” said Jordanna Kwok, director of engineering for Airbnb.
“Whilst both companies shared similar values and market share, the technical acquisition will bring more clarity to the UK short-term and holiday rental market.”
The acquisition is still “underway” as Airbnb integrates Letting Cloud’s technology.