Blueground, a proptech startup, announced that it raised $ 180 million in a Series C trade financing round.
A comprehensive and flexible rental solution
The proptech start-up raised $ 140 million in trading funding spearheaded by WestCap, along with participation from Geolo Capital, VentureFriends, and Prime Ventures. Another $ 40 million in borrowing facility funds came from Silicon Valley Bank. Including the latest commercial funds, Blueground has raised a total of $ 258 million to date.
Founded in 2013, the New York-based startup is on a mission to transform the future of life by building apartments and making them available to clients globally wherever and whenever they want, and on the terms they prefer.
Blueground is building a network of fully furnished and modern apartments where guests can stay for a month, a year or more. The startup proptech offers a comprehensive leasing solution that also includes full rental income for owners regardless of occupancy rate. Blueground currently has more than 5,000 apartments in 15 cities around the world.
“We founded Blueground with the vision of offering our guests a home in every major city, giving them the flexibility and confidence they need to explore the world,” said Alex Chatzieleftheriou, CEO and co-founder of Blueground.
“With the new paradigm of life and work, we are ideally positioned to meet people’s growing demands for greater flexibility. We are incredibly excited about the vast potential for growth, which will accelerate with this latest round of funding.”
The need for long-term hosting has been on the rise, particularly in the post-pandemic era, as the digital nomad sector continues to grow and employees continue to work from anywhere. The startup has managed to maintain the occupancy rate at 92% during the COVID-19 pandemic and has secured cash flow for homeowners, posting an incredible performance in extremely challenging market conditions.
The start-up company has built 1,400 additional units in the last 18 months and has entered three new markets, including Denver, Vienna and Austin. Blueground also continues to invest funds in its proprietary technology, while aiming to be present in 50 cities by 2025. Additionally, the startup is aiming to generate $ 140 million in sales this year.
As COVID-19 restrictions eased, the demand for flexible accommodations increased once again. This increased demand has allowed Blueground to improve its operations and develop the best technology in the proptech sector, helping the company to achieve positive cash flow. The start-up is now hyper-growing and is a leader in monthly to yearly furnished rentals.
Charlie Young, WestCap partner and director of Blueground, said the proptech startup stands out from its competitors in many ways, including “outstanding unit economics in mature markets, distinctive durability that insulates the business from volatility, leading NPS in the more importantly, a disciplined growth style that lends itself to strong forward visibility. ”
John Pritzker, founding partner and principal at Geolo Capital, believes Blueground is on track to address the growing critical need for flexibility in real estate as back-to-office mandates continue to see delays.
As a result of the new business funding, Tom Gottlieb, Co-Founder and Managing General Partner of Geolo Capital, will join Blueground’s board of directors.
The PropTech startup Blueground raised $ 140 million in a Series C business financing round led by WestCap and an additional $ 40 million debt facility from Silicon Valley Bank.