12 November 2008

Major investment for home rental company

The parent company of Holiday-Rentals.co.uk and OwnersDirect.co.uk has raised $250 million in private financing to help speed up Ã¢â¬Åâœorganic growth and growth through strategic acquisitionsÃ¢â¬~.

Texas-based HomeAway, with offices in London and Ashtead in the UK, plus Germany and France, will also use proceeds from the investment to clear its debt and fund marketing and promotions.

In addition, the investment will allow it to introduce a share repurchase program for certain shareholders, including tenured employees.

It claims the funding, led by Technology Crossover Ventures (TCV) and with existing investors Institutional Venture Partners (IVP) and Redpoint Ventures, represents the largest minority investment of a US internet company in the last eight years.

Ã¢â¬ÅâœWe are very pleased to secure this major round of funding, particularly during the current financial crisis that is increasingly restricting access to capital for many companies,Ã¢â¬~ said HomeAway chief executive officer and founder Brian Sharples.

Ã¢â¬ÅâœAnd weÃ¢â¬â¢re especially excited to join forces with TCV to help us execute our long-term growth strategy.

Ã¢â¬ÅâœThe TCV led investment demonstrates their confidence in our business model, and the extraordinary potential in front of us. We expect to benefit tremendously from their experience and record in building leading consumer internet and travel companies.Ã¢â¬~

HomeAway UK managing director Greg Grant said for the UK market the funding will be invested in marketing, technology and improving customer confidence and its reviews programme.

Although the company does not sell through the travel trade, it does offer opportunities for display advertising on its sites, and this would also be part of a renewed focus for next year, he added.

Established in 1996, Holiday-Rentals.co.uk lists over 120,000 properties worldwide.

OwnersDirect.co.uk, founded in 1997, lists over 27,000 privately owned properties, exclusively for rent direct from owners.

Grant said the European market saw 61% growth in enquiries year on year through September 2008.

By Bev Fearis