Berlin-based Arbio has announced a $36 million Series A funding round led by Eurazeo, bringing the company’s total funding to over $45 million. The full-stack AI-first property management company operates at the intersection of AI-enabled services and consolidation strategies, with the ambition to become the go-to brand for short-term rentals in Europe by managing over 1,000 units across Germany, Austria, and the UK.
Founded by Constantin Schröder and Paul Bäumler, Arbio emerged from a personal pain point during travels through Mexico where inconsistent Airbnb experiences revealed gaps in property management. The company has achieved 10x revenue growth over the last two years and completed 30+ strategic acquisitions through its dedicated M&A team, addressing a European market with 6.5+ million alternative accommodation properties still managed using outdated 20th-century methods.
Arbio’s AI-native operating system automates distribution, accounting, operations, guest communications, and dynamic pricing, delivering higher revenues and lower costs for property owners while providing standardized quality for guests. “We’re a technology-first, AI-first company. Everything revolves around product development that simplifies owners’ and guests’ lives,” said Constantin Schröder, founder and CEO. “Long-term, I think 90–95 per cent of what’s now done manually in property management can be automated.”
The company differentiates itself through vertical integration, acting as both property management company and software builder rather than selling software to existing managers. “Many solutions are pure tech — they sell AI software to property managers or owners. We take a different approach: being both a property-management company and a software builder,” Schröder explained. “Software can’t comfort a guest stuck in the rain who can’t check in. So we use AI to enhance—not replace — people.”
Addressing concerns about short-term rentals affecting housing availability, Schröder clarified that Arbio only operates spaces with commercial licenses designed for hospitality use, competing with hotels rather than residents. The company’s dynamic pricing algorithm collects vast market data and correlates it with live search volume, updating prices daily to optimize occupancy and revenue while maintaining guest satisfaction.
Elise Stern, Investment Director at Eurazeo, said: “Arbio is pioneering an 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.” The funding will accelerate Arbio’s acquisition pipeline, enhance AI capabilities, and support expansion into new European markets where vacation rental management remains fragmented.
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