São Paulo’s QuintoAndar real estate platform raises $120M, now valued at $5.1B – TechCrunch

Less than three months after announcing a $ 300 million Series E, Brazilian proptech QuintoAndar has raised another $ 120 million.

The new investors Greenoaks Capital and Tencent from China jointly led the round, in which some existing donors also participated. based in São Paulo fifth floor is now valued at $ 5.1 billion, up from $ 4 billion when it was last raised in late May. With the expansion, the startup has raised more than $ 700 million since it was founded in 2013. Ribbit Capital led the first tranche of its Series E.

QuintoAndar describes itself as an “end-to-end solution for long-term rentals”, which among other things connects potential tenants with landlords and vice versa. Last year it also expanded to connect home buyers with sellers. The long-term plan is to evolve into a one-stop real estate shop that also offers mortgage, title insurance and fiduciary services.

For this purpose eEarlier this month, startup Atta Franchising, a 7-year independent real estate mortgage broker from São Paulo, acquired. In particular, the acquisition of Atta is intended to accelerate its ability to provide mortgage services to its users. According to CEO and co-founder Gabriel Braga, QuintoAndar also plans to look into the possibility of offering a product to conduct standalone transactions outside of its marketplace in partnership with other brokers.

This year QuintoAndar expanded its activities to 14 new cities in Brazil. QuintoAndar is ultimately planning to enter the Mexican market as the first expansion outside of its home country, but has not yet set a date for this move. Today the company manages more than 120,000 rentals and approximately 10,000 new rentals per month. Its rental platform operates in 40 cities across Brazil, while its property marketplace operates in four (São Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre) and has more than 10,000 sales on an annual basis.

QuintoAndar, he said, is open to acquiring more companies that it believes can either help speed things up or add something it hadn’t thought of.

“We’re open to the idea, but our core strategy is to focus on and accelerate organic growth and our own innovation,” said Braga.

Why collect more money so quickly?

Series E was oversubscribed, according to Braga, with investors who got on and “some who couldn’t”.

Greenoaks and Tencent, he said, were unable to attend because of “time problems”.

“We kept talking and they came back to us after the round and wanted to join in, so we figured out a way to have them on board,” said Braga. “We didn’t need the money. But we’ve consistently exceeded the forecast we shared with our investors. And that’s one of the reasons why we had this expansion. “

Greenoaks’ long-term time horizon was attractive because the company’s investment was designed as “unlimited capital with no pre-defined timeframe,” Braga said.

“We’re doing our best to build a long-lasting company that will last for many, many years. So it’s good to have investors who share this vision and are tech-minded, ”he added.

Greenoaks partner Neil Shah said his firm believes what QuintoAndar is building “will fundamentally transform real estate transactions, increasing transparency, expanding opportunities for Brazilians to find housing, dramatically simplifying the experience for landlords and investing in real estate across the board Will push the country forward “. He also believes the company has great potential to expand its offering to other parts of Latin America.

“We look forward to being a partner in the decades to come,” he added.

Tencent’s experience in China is also valuable to QuintoAndar.

“We believe we can learn a lot from them and other Chinese companies that are doing interesting things there,” said Braga.

QuintoAndar isn’t the only Brazilian proptech company raising a lot of money: In March Digital real estate platform in Sao Paulo Attic announced that it has closed $ 425 million in Series D funding led by New York-based D1 Capital Partners. Then, about a month later, a $ 100 million expansion was revealed that the company valued at $ 2.9 billion.