The real estate platform, QuintoAndar has announced an additional $120M in less than 3 months of announcing its $300M Series E. Investors Greenoaks Capital and China’s Tencent co-led the round. Existing backers participate as well. After this injection, the startup has now raised more than $700 million since its 2013 inception. The São Paulo-based company is now valued at $5.1 billion from $4 billion in late May.
Details about the real estate platform QuintoAndar
QuintoAndar describes itself as an “end-to-end solution for long-term rentals”. This, among other things, connects potential tenants to landlords and vice versa. Last year, it also expanded into connecting home buyers to sellers. Its long-term plan is to evolve into a one-stop real estate shop that also offers mortgage, title insurance, and escrow services.
To that end, earlier this month, the startup acquired Atta Franchising. Atta Franchising is a 7-year-old São Paulo-based independent real estate mortgage broker. They acquired Atta to speed up its ability to offer mortgage services to its users. QuintoAndar also plans to explore the possibility of offering a product to perform standalone transactions outside of its marketplace. It plans to do so in partnership with other brokers, according to CEO and co-founder Gabriel Braga.
This year, QuintoAndar expanded operations into 14 new cities in Brazil. Eventually, QuintoAndar plans to enter the Mexican market as its first expansion outside of its home country. Today, the company has more than 120,000 rentals under management and about 10,000 new rentals per month. Its rental platform is live in 40 cities across Brazil. While its home-buying marketplace is live in four (São Paulo, Rio de Janeiro, Belo Horizonte, and Porto Alegre). It is getting more than 10,000 sales in annualized terms.
He said that QuintoAndar is open to acquiring more companies that it believes can either help it accelerate in a particular way or add something it had not yet thought about.
We’re receptive to the idea but our core strategy is to focus on organic growth and our own innovation and accelerate that.Gabriel Braga, CEO and co-founder of QuintoAndar
Why raise more money so soon?
In Series E, some investors could not join. Greenoaks and Tencent couldn’t participate because of the timing issues.
Braga said, “We kept talking and they came back to us after the round and wanted to be involved so we found a way to have them on board. “We did not need the money. But we have been constantly overachieving on the forecast that we shared with our investors. And that’s part of the reason why we had this extension.”
Greenoaks partner Neil Shah said his firm believes that what QuintoAndar is building will “fundamentally reshape real estate transactions and enhancing transparency. They think it’ll expand options for Brazilians seeking housing and dramatically simplify the experience for landlords too. Consequently, it’ll drive increased investment into real estate across the country.” He also believes there is a big potential for the company to take its offering to other parts of Latin America.
“We look forward to being partners for decades to come,” he added.
Tencent’s experience in China is something QuintoAndar also finds valuable.
“We believe we can learn a lot from them and other Chinese companies doing interesting stuff there,” Braga said.