Real Estate Disruptor Arca Properties Kicks Off Series A Round

Arca Properties’ founders (Photo © Arca Properties)

Since its launch in 2019 with just €200 in capital, Arca Properties has emerged as the top short-term rental company in Luxembourg. Despite the pandemic, the company generated €1.6 million in revenue in just over two years and currently operates 70 units. The company is now embarking on a round of Series A funding to further expand its reach.

Arca Properties‘ success can be attributed to several key factors. Firstly, the company was able to quickly implement its vision by partnering with international relocation networks and serving some of the largest corporations in Luxembourg, including Amazon, Barclays, and Arcelor Mittal.

Arca sets itself apart from competitors by offering a portfolio of quality properties and innovative technology solutions. According to Giacomo Trenz, Co-Founder of Arca, “By identifying the market’s and our clients’ needs, we designed a product and service that provides a solution to the high demand for flexible and quality housing, whereas options on the market are limited.”

Luxembourg’s real estate market is ripe for disruption

The company culture also contributes to their success. Everyone at Arca believes the hospitality and real estate markets can be built differently, which creates plenty of opportunities for PropTech startups in Luxembourg. As Matheus Sequeiros, Managing Partner of Arca highlights, “PropTech aims to improve asset management for property owners, landlords, and tenants. Luxembourg requires more tech-savvy firms to optimise investment returns and make the real estate industry more competitive. Companies like Arca, that introduce tech solutions and new business models can easily disrupt the industry and gain market share”.

“From a market perspective, Luxembourg is well-positioned, and there is a need for digital solutions to the short-term rental market like ours.”

Giacomo Trenz, Co-founder of Arca Properties

Investment to support growth

Now they are launching a round of Series A funding. Peter Bansuk Kim, Co-Founder of Arca, explains why it is the right time: “Our product has received enough validation from the market and our clients. We have a recurring international customer base of corporations that need housing solutions in Luxembourg and the markets we identified. Additionally, over the past year, we have been preparing to scale our business model to accommodate rapid growth.”

With the investment, Arca plans to expand its operations to 750 properties, including 250 in Luxembourg, across five new cities: Paris, Amsterdam, Dublin, Madrid, and Munich. According to Trenz, these cities share a similar challenge with Luxembourg: “they all have a high demand for short-term accommodation with limited supply, and many of our corporate clients are already located in these cities.”

They are also planning to launch new products that will enable them to tap into diverse revenue streams, for example developing Arca’s Tenants App and a corporate client interface that facilitates the housing needs of relocating workers. They also aim to support their growth plan by strengthening their infrastructure, growing their team and expanding their partnership network locally and internationally. 

The founders of Arca Properties remain optimistic about the future of the industry in Luxembourg. As Trenz explains, “From a market perspective, Luxembourg is very well-positioned because of its existing real-estate infrastructure. But there is a desperate need for digital solutions to the short-term rental market like ours, which we want to address.”

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