Hotiday leads the Sifted 100 ranking of Southern Europe's fastest-growing startups with a staggering 1330.95% two-year revenue CAGR. The Milan-based hotel room subletting platform outpaced competitors including second-place Lexroom, which recently closed a $50 million Series B round. Barcelona's Enginy rounded out the top three with an 889.61% growth rate.

Business-to-business software continues dominating the ranking, representing 32% of listed companies. Milan emerged as the clear startup hub with 27 companies featured, followed by Barcelona's 14 startups. The region's AI-native sector shows strength with 13 companies making the cut, led by Lexroom's legal tech tools.

Hotiday's unconventional model—subletting rather than owning properties—proved highly scalable. Lexroom's CEO Paolo Fois achieved an 1129.64% CAGR by targeting small law firms with AI-powered tools. Enginy's CEO Kai Brand leveraged LinkedIn as a sales engine, demonstrating how social media presence can drive outbound growth.

Six top-100 companies have already secured funding in 2026, with Lexroom's $50 million raise leading the pack. The ranking reflects Southern Europe's growing reputation for scalable, technology-driven business models that compete globally while maintaining regional roots.