Moving Doors
Fully serviced and equipped flexible accommodation for business professionals and digital nomads.
Highlights
Flexible and fully serviced accommodation for digital nomads and professionals
Raised €1.163M from three Venture Capital Funds: Uni.Fund, Genesis Ventures and Venteri Capital
Exponential growth since inception, with 315 apartments (including pipeline units) and €485K in monthly recurring revenue as of April 2024
Presence in Limassol, Larnaca, Paphos and Dubai with planned expansion to Saudi Arabia
Experienced management team with a proven track record in real estate and entrepreneurship
Overview
Just bring your suitcase
Moving Doors provides a network of conveniently located, fully furnished and beautifully designed apartments in Limassol, Larnaca, Paphos and Dubai, with plans for further expansion.
With its fully curated network of apartments, it transforms the experience of city living and relocation for travellers, business professionals, and digital nomads, making it easy to move between different cities and neighbourhoods, fostering diversity of experiences.
The Problem
Demand and Supply Mismatch
The current market for real estate rentals is fragmented and sluggish, with bureaucratic processes that have not changed over the past decades.
Renters seeking flexible lease terms, fully furnished apartments with utilities included, a seamless digital experience and exceptional support, that individual landlords or agencies are unable to provide.
The Solution
Moving Doors harmonizes the rental market by bridging the gap between landlords and renters by offering flexible contracts, fully furnished and ready to move in apartments, remote booking, continuous support and a sense of community.
Mission & Vision
The team has a clear mission to use technology to transform the experience of relocation and mid-term tenancies by building a network of smart homes and form a community of like-minded people that fosters collaboration and creativity.
What we do
Moving Doors operates a simple and scalable business model:
Lease: We identify properties that are well-located and close to business hubs and lease them for a period of up to five years. All leases have a three-month exit clause.
Furnish & Equip: We have an award-winning interior design team that refurnishes and equips the property with a budget of up to €10K per apartment.
Sublet: Finally, we sublet the property through our website, local listings and B2B tenants on a flexible basis. In addition, we make a margin and income from complementary services.
How we started
Our journey to deliver an exceptional experience to tenants started with a 2-bedroom flat in Limassol in February 2022:
How we do it today
We completely redesign and furnish apartments to deliver a home-like experience to our tenants, with 229 operational apartments in our network as of April 2024.
Value Proposition
Our business bridges demand and supply and offers an array of benefits to both landlords and tenants.
For landlords, we provide a steady stream of income throughout the duration of the lease contracts, eliminating rental gaps and the need to deal with property management hassles.
For tenants, we provide flexible contracts for stylish, fully furnished apartments that can be booked through a completely online process, along with round-the-clock support.
Customer Journey
Moving Doors offers a seamless and fully online customer experience through three easy steps:
Choose a location: Tenants begin their journey on the Moving Doors platform by selecting their desired destination, whether it's for work, travel, or relocation purposes.
Find an apartment: After choosing a location, tenants can browse through a curated selection of fully furnished apartments, comparing various features, amenities, and prices to find the perfect match for their needs.
Book your stay: Once the ideal apartment is found, tenants can seamlessly book their Moving Doors accommodation through the platform, ensuring a hassle-free experience from start to finish.
Why Now
The need for Moving Doors has become increasingly urgent due to several converging trends and factors that have shaped the landscape of work, travel, and accommodation preferences.
These trends make our solution not only relevant but essential for catering to the evolving demands of our target customers:
Market Size
The rise in digital nomads and travelling professionals, driven by the evolving mid-term accommodation market, presents a significant opportunity for Moving Doors.
In 2022, the European market for mid-to-long-term tenancies was valued at $63 billion, projected to reach $97 billion by 2026, representing a compound annual growth rate of 11.4%!
Moving Doors has strategically chosen specific markets to expand, which are experiencing faster growth and with less competition, resulting in a total addressable market of $12 billion by 2026.
Competitive Landscape
Although Moving Doors is not the first platform to offer flexible mid-term accommodation, its geographic focus and community bonding activities make it stand out from the competition.
Our Journey
We began our journey in February 2022 with a single two-bedroom apartment and quickly grew to 20 apartments in June 2022. At that time, we welcomed the first three full-time employees in the company.
In September 2022, we secured our first corporate client, Exness, enabling their global workforce to travel flexibly between offices. By the end of 2022, and in less than 10 months, the company generated €1 million in revenues from 100 apartments.
In January 2024, we successfully raised €1.136M in seed-stage funding from Uni.Fund, Genesis Ventures, and Venteri Capital and begun our expansion into Dubai with our two fully serviced apartments.
Looking further into the future, we see lucrative opportunities to expand into markets such as Riyadh, Saudi Arabia and other strategic cities.
Go-to-Market Strategy
Moving Doors’ go-to-market strategy aims to establish itself as the market leader in Cyprus and enable expansion into high-value markets.
This three-step approach is divided into short-term, medium-term, and long-term objectives, focusing on four key areas: Flat Acquisition, Flat Retention, Tenant Acquisition, and Tenant Retention.
In the short term, Moving Doors plans to become the undisputed market leader in Cyprus by expanding its property portfolio and market share.
In the medium term, the company intends to continue its expansion into high-value markets in the Middle East, such as Dubai and Saudi Arabia, leveraging its successful business model and experiences from the local market.
Key Highlights
Moving Doors has demonstrated strong financial performance and growth, as evidenced by its key performance indicators (KPIs). In the fiscal year 2023, the company generated €3.72 million euros in revenue through 100% organic demand.
The company's strong gross margin of 41% enhances its ability to maintain profitability while still investing in the growth of its property portfolio. Moreover, Moving Doors boasts a 97% occupancy rate, with an average tenancy duration of 9 months, indicating strong demand for its properties and the satisfaction of its tenants.
The average rent received was €2.2K per month, while the average rent paid was €1.35K per month, further highlighting the company's efficient operations and effective cost management.
Current Traction
Since its inception in February 2022, Moving Doors has seen unprecedented demand and growth for its services, reaching a Monthly Recurring Revenue (MRR) of €485K from 229 operational apartments in April 2024.
Financial Projections
Building on its proven track record and success, Moving Doors will accelerate its local dominance and expand to other lucrative markets like Dubai and Saudi Arabia through continuous apartment acquisition.
Following that, Moving Doors is on track to reach its target of 580 apartments by the end of the year and is expected to have 1,437 apartments by the end of 2025 and more than 2,300 apartments by the end of 2026.
Based on the current market prices and the traction of the company so far, Moving Doors is expected to generate ~€13.7 million in revenues in 2024 and reach ~€68.9 million by the end of 2026 with a gross margin of 42%.
Although the business is already profitable with positive operating profitability metrics (Gross and EBITDA margins) and is expected to continue to operate as such, it will have a net negative cash flow due to the aggressive growth strategy and capital required for the refurbishment of the apartments.
Use of Funds
Having already successfully completed its seed-stage funding round of €1.163M with investments from Uni.Fund, Genesis Ventures and Venteri Capital, Moving Doors is now extending the opportunity to the broader community to join them through a crowdfunding campaign!
The investment will be deployed in three key areas: capital expenditure for the refurbishing of newly acquired apartments, expansion of the team through key hires and marketing expenses to spread brand awareness.
Moving Doors will continue to invest heavily in Capital Expenditure in terms of developing its platform for a better customer experience and new features, as well as the expenditure spent on the refurbishment of new apartments.
For more details, check out Moving Doors Financial Model in the Documents tab.
Exit Strategies
In light of the recent consolidation trend in the market, Moving Doors’ exit strategies should consider multiple avenues to maximize returns for investors and stakeholders. One of the most likely scenarios, as mentioned, would be an acquisition by one of the major players in the industry once Moving Doors achieves a critical scale.
Another potential strategy is for the company to stop its aggressive growth and focus solely on generating profits. Given its already positive operating profitability, if further market expansion proves unfeasible or if an acquisition is not achievable, the company could shift its focus to profitability, allowing it to pay dividends to investors.
An initial public offering (IPO) is another potential exit strategy, allowing Moving Doors to access public capital markets for future growth and expansion. Going public could provide liquidity to shareholders and increase the company's visibility and credibility in the market. However, this option would require careful consideration of market conditions, financial performance, and regulatory requirements.
