Swimply Raises $40M to Expand Online Pool Marketplace

A New Wave in the Sharing Economy: Swimply's Rise

The idea of creating a marketplace centered around underutilized assets, transforming them into viable businesses for owners, isn't novel. Airbnb stands as a prime example of the success achievable with this model. Consequently, it’s unsurprising that GGV Capital, a significant investor in Airbnb, is now supporting a startup pursuing a comparable strategy.

From Properties to Pools: Swimply's Unique Approach

However, instead of listing properties, Swimply conceived a platform connecting homeowners with pools to individuals seeking private access. Initial results indicate a thriving business model.

Recent Funding and Backer Confidence

The company has recently secured $40 million in a funding round spearheaded by Mayfield, just seven months after a $10 million financing announcement. This round included participation from Mayfield, GGV, Ensemble Ventures (Conrad Shang and Collin West), and a distinguished group of angel investors.

Notable Investors Include Airbnb Founders and Industry Leaders

Among the angel investors are Airbnb co-founder Nate Blecharczyk, Casey Winters (formerly of Pinterest and Grubhub), Lime co-founder Brad Bao, Rob Chestnut (ex-chief ethics officer at Airbnb and eBay), Instacart CEO Fidji Simo, and Shef’s Alvin Salehi. Existing investors Norwest Venture Partners and Trust Ventures also contributed.

How Swimply Connects Owners and Renters

Swimply operates by linking homeowners with unused backyard spaces and pools to individuals looking for a place to socialize, cool down, or exercise. Pools can be rented by the hour, with average prices ranging from $45 to $65, contingent on available amenities.

Impressive Growth and Revenue Figures

In May, co-founder Bunim Laskin revealed to TechCrunch that Swimply was generating “seven-figure monthly revenue” and processing 15,000 to 20,000 reservations each month. The platform has experienced threefold growth in the last six months alone.

Booking Numbers Surge

Over the past year, Swimply facilitated 250,000 bookings, a substantial increase from the 40,000 bookings recorded the previous year – representing more than a sixfold rise. In 2021, the service connected 1 million people with 15,000 pools across 103 cities.

Revenue Model and Commission Structure

While the company hasn't disclosed its total revenues, a 10% guest service fee (covering insurance and support) and a 15% commission from owners suggest a significant income stream based on booking volume.

Surprising Demand and Expansion Plans

The rapid increase in demand took even co-founders Laskin (who initially conceived the idea at age 20) and Asher Weinberger by surprise.

Laskin explained to TechCrunch that 2020 saw smaller gatherings, but 2021 brought a surge in birthday parties, swimming lessons, and reunions as people resumed in-person activities following vaccinations.

Beyond Pools: Expanding into Diverse Outdoor Spaces

Swimply now intends to broaden its scope beyond pools to encompass various outdoor spaces. The 2022 roadmap includes connecting users with underutilized hot tubs, tennis courts, spacious backyards, rooftops, and potentially even indoor gyms.

Promoting Sustainability Through Resource Optimization

This expansion indirectly contributes to sustainability by maximizing the use of existing spaces, thereby reducing the need for new construction.

Empowering "Solopreneurs" Through Swimply

Swimply emphasizes its role in fostering entrepreneurship, mirroring Airbnb's impact on hosts. According to Laskin, hosts have the potential to generate substantial income.

Host Earnings: From Side Hustle to Significant Income

The top-earning host made just over $20,000 in 2020. This year, several hosts surpassed the six-figure income mark. The top 20% of hosts earned approximately $5,000 per month, Laskin reported.

New Tools for Host Business Management

Laskin stated, “This is turning a lot of people into solopreneurs.” To support this, Swimply is allocating capital to develop new tools for hosts to streamline their business operations. Some hosts are already enhancing their offerings with vending machines or chef services.

Scaling Support, Insurance, and New Verticals

The company also plans to enhance its support infrastructure, insurance coverage, and launch new service categories.

Key Market Statistics and User Demographics

Interesting data points reveal that 20% of Swimply’s revenue originates from the Los Angeles market. Other prominent markets include Austin, Texas; Portland, Oregon; New York City; and Maryland. Sixty percent of bookings are made by families, with the average reservation lasting two hours. Approximately 72% of bookings are repeat reservations.

Investor Perspective: The Sharing Economy's Potential

Mayfield Managing Director Navin Chaddha highlighted his firm’s strong belief in the sharing economy, evidenced by investments in companies like Lyft and Poshmark, as well as leading this funding round. The pool market is particularly attractive due to the widespread popularity of swimming and limited access to pools for many families.

Democratizing Access to Recreational Spaces

Chaddha stated that Swimply’s mission is to “democratize ownership of recreational spaces and to allow hosts to share underutilized assets for their local communities, starting with swimming pools.” He expressed excitement about partnering with Swimply to broaden access to amenities.

Mission-Driven Founders and Market Opportunity

The combination of a substantial market opportunity and dedicated founders was a key factor for Chaddha.

Significant Market Potential Beyond Swimming Pools

“Swimply has seen exploding growth, and we believe the market is much bigger than swimming pools, which in and of itself is a $52 billion market,” he told TechCrunch. “They have the potential to do with Airbnb, Lyft and Poshmark for this constituency. It was a no-brainer to lead a $40 million round for this company.”

GGV and Principal Li's Vision for Swimply

GGV Managing Partner Hans Tung and Principal Robin Li shared similar motivations for investing in Swimply.

Reinventing the Country Club Experience

Li emphasized the potential for providing easier and more private access to outdoor spaces. “This is the country club reinvented and even revolutionizing what the YMCA will be like in the future,” she said. “At most of these places, there are so many restrictions on what you can wear, and what you can do. There are so many hurdles to book a place, even in your local neighborhood.”

High Repeat Usage Indicates a Seamless Experience

The high rate of repeat users, in her view, demonstrates the platform’s user-friendliness.

Frequency of Use: A Key Differentiator

Tung noted parallels between Airbnb and Swimply’s models, but highlighted a crucial difference: the frequency of swimming or outdoor activities compared to travel. “Swimming is more everyday use and a higher frequency of usage, which makes the platform extremely interesting,” he told TechCrunch.

Increased Monetization Opportunities for Hosts

This higher frequency translates to greater earning potential for hosts, as they can rent the same space multiple times per day and week.

Empowering Everyday People to Monetize

“Frequency usage is a lot higher than any travel site,” he said. “So like TikTok and Poshmark, Swimply is allowing more everyday people to monetize, and empowering more merchants.”