Less than three months after the announcement $ 300 Million Series EBrazilian company proptech QuintoAndar raised an additional $ 120 million.
New investors Greenoaks Capital and China’s Tencent jointly spearheaded the round, which also featured some existing sponsors. To Sao Paulo QuintoAndar is now valued at $ 5.1 billion, up from $ 4 billion during the last rise in late May. Through the expansion, the startup has raised over $ 700 million since its founding in 2013. Ribbit Capital has withdrawn the first tranche of its Series E.
QuintoAndar describes itself as a “complete long-term rental solution” that, among other things, connects potential tenants with landlords and vice versa. It also expanded last year to connect home buyers to sellers. His long-term plan is to grow into a one-stop real estate store that also offers mortgage, title insurance, and escrow services.
To this end, eEarlier this month, the startup acquired Atta Franchising, a 7-year-old independent mortgage broker based in Sao Paulo. In particular, the acquisition of Atta is intended to accelerate the provision of mortgage services to users. According to CEO and co-founder Gabriel Braga, QuintoAndar also plans to explore the possibility of offering a product to perform offline transactions outside of its marketplace in partnership with other brokers.
This year, QuintoAndar expanded its operations to 14 new cities in Brazil. After all, QuintoAndar plans to enter the Mexican market as its first expansion outside of its home country, but has yet to set a date for that move. Today the company manages over 120,000 lease units and about 10,000 new lease units per month. Its rental platform operates in 40 cities across Brazil, and its home buying market in four (São Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre) and has over 10,000 annual sales.
According to him, QuintoAndar is open to acquiring more companies, which he believes can either help him accelerate in a certain way, or add something he hasn’t thought about yet.
“We are receptive to this idea, but our main strategy is to focus on organic growth and our own innovation and accelerate it,” said Braga.
Why collect money so quickly?
Serie E was oversubscribed due to investors who entered and “some who were unable to join,” Braga said.
Greenoaks and Tencent cannot participate due to “timing problems,” he said.
“We kept talking and they came back to us after the round and wanted to get involved, so we found a way to get them on board,” Braga said. “We didn’t need money. But we are constantly overfulfilling the forecasts that we shared with our investors. And that’s one of the reasons we had this extension. “
Greenoaks’ long-term time horizon was attractive because the firm’s investment was conceived as “constant capital without a predetermined time frame,” Braga said.
“We are doing our best to build a sustainable company that will exist for many, many years to come, so it is good when there are investors who share this vision and are technically aligned,” he added.
Greenoaks partner Neil Shah said his firm believes that what QuintoAndar is building will “revolutionize real estate transactions, increase transparency, increase opportunities for Brazilian housing seekers, greatly simplify the experience for landlords and lead to increased investment in real estate. the whole country. ” He also believes that the company has great potential to expand its offer to other parts of Latin America.
“We hope to be partners for decades to come,” he added.
Tencent’s expertise in China is also appreciated by QuintoAndar.
“We think we can learn a lot from them and other Chinese companies doing interesting things there,” Braga said.
QuintoAndar isn’t the only Brazilian tech company to raise big bucks: in March São Paulo Digital Real Estate Platform Loft announced that it has closed its $ 425 million Series D funding led by New York-based D1 Capital Partners. Then, after about a month, it turned out that $ 100 million renewal which valued the company at $ 2.9 billion.