Hotiday Tops the Sifted 100: A Look at Southern Europe’s Fastest-Growing Startups
In the vibrant landscape of southern Europe’s startup ecosystem, Hotiday, a Milan-based startup, has emerged as a standout player, clinching the top spot on the Sifted 100 Leaderboard for 2026. This annual ranking, produced in partnership with AI infrastructure company Nebius, highlights the 100 fastest-growing companies in the region, showcasing innovation and entrepreneurial spirit.
Hotiday: Revolutionizing Hotel Subletting
Founded in 2022 by a trio of ambitious students, Hotiday has made waves with its unique business model that sublets hotel rooms to travelers. The company achieved an astonishing 1330.95% two-year revenue compound annual growth rate (CAGR) between 2023 and 2025. CEO Vittorio Gargiulo explains their approach: “When we started, we thought, we can’t just buy buildings, and we can’t franchise the brand. But we can sublet.” This innovative strategy has allowed Hotiday to carve out a niche in the competitive travel industry.
Lexroom: Empowering Legal Teams with AI
In second place is Lexroom, another Milan-based company that provides AI tools tailored for small law firms and corporate legal teams. Recently, Lexroom raised a significant $50 million in a Series B funding round, further solidifying its position in the legal tech space. Co-founder and CEO Paolo Fois has led the company to an impressive 1129.64% CAGR, demonstrating the growing demand for technology-driven solutions in the legal sector.
Enginy: AI-Powered Sales Solutions
Claiming the third spot is Enginy, a Barcelona-based startup that leverages AI to assist sales professionals in identifying potential customers. With an 889.61% CAGR, Enginy is on track to achieve €10 million in annual recurring revenue by the end of the year. CEO Kai Brand has effectively utilized LinkedIn as a sales engine, stating, “Building that presence has helped a lot in our outbound sales.” His approach emphasizes the importance of social media in establishing trust and familiarity with potential clients.
The Landscape of Southern European Startups
The Sifted 100 Leaderboard ranks companies based on their revenue growth over the past three financial years, calculated using a two-year revenue CAGR. This year, 32% of the ranked companies fall under the business-to-business (B2B) software category, a slight decline from previous years. Notably, nine climate tech startups made the list, while 13 companies are classified as AI-native, with Lexroom leading this category.
Milan continues to dominate the startup scene, hosting 27 of the ranked companies, followed by Barcelona with 14 and Madrid with seven. The presence of these cities highlights the growing entrepreneurial spirit in southern Europe, particularly in tech-driven sectors.
The Fastest-Growing Startups of 2026
The top ten fastest-growing startups in southern Europe for 2026 are as follows:
- Hotiday: Hotel booking site
- Lexroom: AI tools for lawyers
- Enginy: AI-powered sales platform
- Jet HR: Payroll and HR software
- reveni: E-commerce software for managing returns
- Plannix: Financial advisory platform
- toduba: Software for managing meal vouchers and gift cards
- Embat: AI tools for chief financial officers
- qomodo: Buy now, pay later tool for retailers
- e-motion: EV charging hardware
This diverse array of companies reflects the innovative spirit and adaptability of southern European startups, each addressing unique challenges in their respective industries.
Criteria for Selection
To qualify for the Sifted 100, companies must meet specific criteria:
- Be private and independent
- Be headquartered in Italy, Spain, Portugal, Turkey, Greece, Malta, Cyprus, San Marino, or Andorra
- Have been founded no earlier than 2010
- Generate a majority of revenue from proprietary technology
- Provide at least three years of revenue data
- Achieve a minimum revenue of €10,000 in the base year and €100,000 in the most recent financial year
The rigorous selection process ensures that only the most promising and innovative startups are recognized, highlighting the dynamic nature of the region’s entrepreneurial landscape.
Research Methodology
The Sifted Intelligence team conducted extensive research to identify high-growth startups, accepting applications from January 1 to May 8, 2026. Companies were required to submit relevant documentation to support their financial claims, ensuring transparency and accuracy in the ranking process.
The Sifted 100 Leaderboard not only celebrates the achievements of these startups but also serves as a beacon for investors and entrepreneurs looking to navigate the thriving southern European market.
