- This is QuintoAndar’s fifth fundraising since its founding in 2013;
- Internationalization was already part of the startup’s plans, but the COVID-19 pandemic and its impacts forced QuintoAndar to delay the idea;
- But as the market rebounded, being a digital native helped QuintoAndar stand out and speed up its expansion plans again.
Brazilian unicorn QuintoAndar announced a new $300 million Series E funding round led by Ribbit Capital that lifts four times the company’s valuation to $4 billion. It’s one of the largest rounds received by Latin American startups this year, after the $425 million round raised by Loft in March and Nubank‘s pre-IPO Series G of $400 million.
Also participating in the fundraising were SoftBank Latin America Fund, LTS, Maverick, Alta Park, Dragoneer, Qualcomm, Kaszek, and an undisclosed U.S. diversified asset manager with more than $2 trillion under management.
This is QuintoAndar’s fifth fundraising since its founding in 2013. The last round was in September 2019, and the company became a unicorn after its Series C, with a valuation of just over $1 billion. In total, the startup has raised more than $600 million to date, but for now, QuintoAndar told LABS that it has no IPO plans in the near term.
QuintoAndar will use the new resources to expand its most new vertical, home buying and selling, which started in 2020 after some pilot projects in the previous year, in addition to product consolidation, technology, and hiring. The company will also use the new round for international expansion, starting in Mexico in the coming months.
Internationalization was already part of the startup’s plans, but the COVID-19 pandemic and its impacts forced QuintoAndar to delay the idea. In April 2020, the beginning of the pandemic in Brazil, the startup laid off 8% of its more than 1,100 employees, because of the drop in demand at the time.
But as the market rebounded, being a digital native helped QuintoAndar stand out since its apps shorten the process of renting, buying, and selling, replacing bureaucracies that needed to be solved in person through technology.
According to QuintoAndar, this also applies to more trivial situations, which were important in times of social distancing, such as scheduling visits, negotiating prices, and offering video tours. Everything was done online.
Unlike other sectors, the real state sector in Brazil benefited from the pandemic. On Thursday, the association of real estate lenders in Brazil Abecip reported that real estate credit with savings resources totaled BRL 16.7 billion in April, the third-highest nominal monthly volume in the historical series that started in 1994.
In this context, Gabriel Braga, co-founder and CEO of QuintoAndar, said, in a press statement, that there is a whole string of new services to be added to the startup’s portfolio in the coming months.
“Our vision is to become the go-to destination for everyone to find and transact their ideal home; be it renting, buying or other emerging innovative types of real estate transactions,” said Braga.
Mexico is not the only destination on QuintoAndar’s roadmap. Braga did not disclose the second international country to be explored by the Brazilian unicorn but said that the focus would be on large cities.
“Although real estate is an inherently local business, with local nuances and network effects, we believe the core pain points and market dynamics are quite similar across LatAm, and we’re excited about amplifying our impact in the region.”
In Brazil, QuintoAndar says it has 100,000 rentals under management and about 10,000 new rentals per month. It also has more than 60,000 properties for sale across the three largest cities in the country.
The proptech closed more than 1,000 transactions in the first year of
operation and has now surpassed the mark of 8,000 transactions in annualized terms, growing between 50% and 100% quarter over quarter.