Restworld Revenue, Valuation & Funding (2024)

Restworld reported approximately 33,000 euros per month in recurring revenue as of March 2023, which Luca Lotterio confirmed is derived from 95 active customers paying an average of 350 euros per month per slot. On an annualized basis, that monthly figure translates to roughly 396,000 euros for 2023. One year prior, in early 2022, the company was generating approximately 8,000 euros per month, or roughly 96,000 euros annualized, representing year-over-year growth of more than 300 percent.

Restworld had 95 active customers as of March 2023. The average customer pays 350 euros per month per slot, where a slot represents one simultaneous open job search. Pricing ranges from 200 euros to 4,100 euros per slot per month depending on the scope of service, and the largest single customer was spending approximately 2,000 euros per month at the time of the interview.

Restworld's target customer is a small hospitality business with between one and twenty employees. Customers typically open a monthly subscription, fill their open position, and then cancel, creating a high short-term churn rate. However, Lotterio noted that these same customers frequently return within two to three months when they need to hire again, which he described as a momentum churn dynamic rather than permanent customer loss.

Subscriptions are available on monthly, quarterly, or annual terms.

Restworld operates on a recruiting-as-a-service model, which Lotterio distinguished from traditional software-as-a-service by noting that customers receive a managed human service rather than self-serve software. Each customer is assigned a customer success manager who handles the recruiting process end to end. Revenue is subscription-based, with monthly, quarterly, and annual options available.

The company acquires customers primarily through Meta advertising. Lotterio stated that the cost per lead from advertising is approximately three to four euros, and the company converts one in five leads into a paying customer. Including the cost of the sales conversation, the total customer acquisition cost is under 100 euros. At an average monthly revenue of 350 euros per customer, Restworld recovers its CAC within the first month of a customer relationship.

Monthly churn is approximately 30 percent, reflecting the episodic nature of small restaurant hiring. Annual churn, accounting for customers who return after a gap, is approximately 15 percent. Profitability was not discussed in the interview.

Restworld had 12 full-time employees as of March 2023. Of those, three are engineers covering front-end and back-end development, with Lotterio noting the company was in the process of adding a fourth engineer at the time of the interview. One of the four co-founders, the IT engineer, is counted among the three engineers. The management engineer co-founder serves as CFO and is not counted in the engineering headcount.