The Latin American region is experiencing exploding growth in proptech and fintech sectors because real estate and financial services need innovation in the region right now.
QuintoAndar, a Brazilian proptech company, has seen a huge growth in the last few years. It has built a real estate marketplace that focuses on rental. It raised $300 million in a Series E round of funding. The company’s worth has reached $4 billion with this round.
QuintoAndar is a Brazilian start-up. It started in 2013 with Andre Penha and Gabriel Braga as its founders.
Initially, the company offered a platform where both landlords and renters could find each other. This eliminated the need for rental insurance or deposits and guarantors. Landlords also received protection from insolvent renters. Now, its users can use the platform to explore, promote, book, and rent their properties online.
The recent round is considered important for a few reasons. The value is more compared to any standard but specifically for a Latin American company. In September 2019, it raised $250 in Series D. However, the recent amount is four times the previous amount.
The major investor in Series E is Ribbit Capital, based out of Silicon Valley. Kaszek Ventures, Alta Park, SoftBank’s LatAm-focussed Innovation Fund - LTS, and Maverik are some other investors in this round.
Like Robinhood, Coinbase and CreditKarma, Ribbit Capital has always emphasized early-stage investments in the fintech sector. Ribbit’s huge investment in QuintoAndar clearly shows its faith in what the company is preparing. It also has confidence in QuintoAndar’s future plans to make its platform a one-stop real estate solution. It will start some new services like escrow, title, insurance and mortgage services.
The latest round has led its total raised to $635 since its inception in 2013.
Nick Huber, Ribbit Capital’s partner, praised QuintoAndar. He claimed the company had built a trusted and unique brand across the country over the years that the people can rely upon.
Gabriel Braga, co-founder and CEO of QuintoAndar shared the story of their growth and how they attracted such high-profile investors.
He mentioned that, with the onset of the pandemic, the majority of the businesses throughout the world prepared themselves for the worst conditions. QuintoAndar was no exception and did the same. It was a tough time for the company because one of the major elements of its business is to ensure rents are paid to landlords.
He further added that the pandemic made them strategically test the business model. To their surprise, it validated their business’ strength.
QuintoAndar manages more than 100,000 rentals, and about 100,000 rentals are added every month. Its rental platform operates across 40 cities in Brazil, and home buying operates in 4 cities. It will spend a part of the new capital in expanding its market within Latin America and Brazil also.
Now, the company wants to explore Mexican markets at the end of the year. With this, it wants to hire the best talents across the globe because they want to work more on the product and tech core.