Authorization

SoftBank mints QuintoAndar a new unicorn in Latin American real estate tech

QuintoAndar, the Brazilian real estate technology developer, has secured a massive $250 million Series D led by SoftBank, as the Japanese conglomerate continues to deploy its $5 billion commitment to the Latin American region. The round is the latest sign that startups in Latin America can get money if they’re developing technologies in specific areas that are massive painpoints for the geography’s nascent middle class.
QuintoAndar invented a marketplace that lets users search, book, rent and advertise rental properties in Brazil. The site manages listings and visits, transaction processing between tenants and landlords, and houses the digital contracts that bind these agreements together. QuintoAndar also developed a credit analysis system that negates the need for co-signers, deposits and rental insurance – barriers that have historically blocked deal flow in this industry.
Co-founder and CEO Gabriel Braga says QuintoAndar has now entered unicorn territory thanks to the SoftBank-led round. Dragoneer also participated, as well as return investors General Atlantic and Kaszek (which recently announced a fresh $600 million fund of its own). 
QuintoAndar, which literally translates from Portuguese to English as “fifth floor,” is an example of a Brazilian startup solving Brazilian problems. Those seeking long-term rentals in big cities like Sao Paulo and Rio de Janeiro are throttled by bureaucratic policies that enforce expensive deposits, co-signer requirements and skyscraper-high insurance fees. On the supply side, amateur landlords are tunnel visioned on making money from transactions, creating a terrible customer service experience for tenants, along with wasted hours of apartment hunting. QuintoAndar is billing itself as a modernized fix that lets users search, book, rent and advertise rental properties in Brazil. 
The startup, which has grown into a 1,000 person Sao Paulo-based operation has now amassed a total of $345 million to date, including a $64 million Series C led by General Atlantic that closed just nine months ago. Braga declined to confirm the exact valuation of QuintoAndar, but says that it has crossed the threshold of billion dollar status. The company was founded in 2013. 
Why is this long term rentals startup accumulating so much capital? Brazilians are seeing home ownership as less of a long-term goal and are opting to rent, meaning more money in the bank and freedom to relocate. This, the founder believes, creates a big opportunity to make renting more efficient in a country where 62% of Brazilians are aged 29 or under, according to this review. Brazil’s population of 211,000,000 people has proven a hungry enough market for a startup like QuintoAndar to turn profitable, and to attract foreign investors like SoftBank. Co-founders Andre Penha and Braga were able to leverage these massive foreign investment checks to create a specific product to help generate liquidity for users in its home market. 

Brazilian long-term rentals service QuintoAndar raises $64M Series C
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Октябрь 2019    »
ПнВтСрЧтПтСбВс
 123456
78910111213
14151617181920
21222324252627
28293031