Less than three months after announcing a $300 million Series E, Brazilian proptech QuintoAndar has raised an additional $120 million.
The round was led by Greenoaks Capital, China’s Tencent and new investors. Some existing backers also participated. QuintoAndar, a Sao Paulo startup is valued at $5.1 Billion. This represents a significant increase from the $4 billion it was worth at its most recent raise in May. The startup now has more than $700,000,000 in funding since it was founded in 2013. Ribbit Capital was the lead for its first tranche in Series E.
QuintoAndar is described as an “end to end solution for long term rentals”. It connects tenants with landlords, and vice versa. It also connected home buyers and sellers last year. The long-term goal is for it to become a single-stop shop in real estate that offers title insurance, mortgage and escrow services.
The startup purchased Atta Franchising (a seven-year-old independent real estate broker based in Sao Paulo) earlier this month. The acquisition of Atta Franchising is intended to increase the company’s ability to provide mortgage services. QuintoAndar CEO Gabriel Braga said that the company is also exploring offering standalone transaction products outside its market, in collaboration with brokers.
QuintoAndar has expanded its operations to 14 cities in Brazil this year. QuintoAndar will eventually expand into Mexico, but hasn’t yet determined a date. The company currently manages more than 120,000 properties and has about 10,000 rentals per month. The company’s online rental platform is available in forty cities in Brazil. Its home-buying market is currently live in four of these cities (Sao Paulo Rio de Janeiro Belo Horizonte, Porto Alegre and Sao Paulo).
QuintoAndar said that it is open to buying more businesses that can help it grow in some way, or bring new ideas and opportunities.
Braga stated that while they are open to the idea, their core strategy was to concentrate on organic growth as well as our own innovation to accelerate it.
You should raise money quickly!
According to Braga, the Series E was oversubscribed by investors who were able to get in as well as “some who couldn’t join.”
Greenoaks said Tencent and Greenoaks couldn’t take part due to “timing problems.”
Braga stated that they kept in touch with them and after each round, they wanted to come back to us. “Braga added. We didn’t need the money. We have overestimated the projections we made to our investors. This is why we created this .”
Greenoaks was attractive because its investment in the company was meant to be permanent capital, Braga stated.
He said, “We are trying to create an enduring company that will last many, many decades.”
Greenoaks partner Neil Shah stated that QuintoAndar’s technology will transform real estate transactions. He believes it will improve transparency and offer more options to Brazilians looking for housing. It also makes landlords easier, which in turn could lead to increased real estate investment.
He said, “We are looking forward to be partners for many decades to come.” __S.29__
QuintoAndar finds the experience of Tencent in China valuable.
Braga stated that they believe there are many things to be learned from Chinese companies and those doing innovative work in China.
QuintoAndar doesn’t have to be the only Brazilian proptech firm that is raising large amounts of money. In March, Loft, a Sao Paulo-based digital real estate platform, announced it had secured $425 million from D1 Capital Partners in Series D financing. It then announced a $100m extension, which valued the company at $2.9Billion, just a month later.
Publited at Fri, 20 August 2021 16:59.04 +0000