Rentable, an online multifamily property and rental management platform, recently raised $22.5 million in Series B funding.
Rentable cleared Susquehanna Growth Equity, a private equity and venture capital fund, led the round. 4490 Ventures and Flyover Capital were the other two participants in this funding. Both of these also participated in Rentable’s $5M Series A round of funding in 2016.
Rentable was earlier known as ABODO. It is a real estate technology company that was founded in 2013. Headquartered in Madison, WI, the company offers a flawless e-commerce rental experience for property owners and renters.
Rentable provides its services in all 50 states. The company believes in making renting a smooth e-commerce experience.
About Susquehanna Growth Equity
Susquehanna Growth Equity, LLC is an entrepreneur-centric growth equity fund. It has time horizons and flexible capital. SGEP focuses on information services companies and growth software. In the last 15 years, the firm has invested more than $2 billion in over 70 market-leading technology companies. It has portfolio companies in Israel, Europe, the US, and Canada.
There was a major increase in valuation in this funding compared to Rentable’s last round of funding. However, the company didn’t disclose a specification valuation figure.
Alec Slocum, the CEO and co-founder of Rentable, aims to take the apartment rental market out of the classified era with the help of this company and to create an intuitive and easy rental process just like any other e-commerce avenue.
The company also creates tools for property owners which make leasing, management, and listing smooth. Unlike its competitors, such as Apartmentguide.com or Rent.com, Rentable emphasizes mid-market or smaller scale landlords, which otherwise might not get any role in the online marketplace. According to Slocum, when Rentable addresses the management and listing problem for landowners, it simultaneously solves the search problem for renters as well. Just creating another screen or adding a new filter will not make a difference in the search experience for renters. That’s because there has to be new technology, new content.
Due to the lockdown, the startup’s revenue doubled in 2020. With the latest funding, Rentable wants to double its workforce in the coming year. The new employees will be hired in engineering, product, sales, and business development.
Josh Elser, the managing director at Susquehanna Growth Equity, commented about Rentable’s status in the marketplace. He termed it as a dream scenario. Today, young renters have no sophisticated online platform at a critical time in their financial lives.
The big, old players aren’t in a position to change their ways. Such companies have created an environment where Rentable companies have a huge scope for growth and improvement.
Elser suggested the investments are significant, the technology is finally up to the mark, the companies have reached a decisive point, and the capital markets are ready for exit. The time is perfect for proptech growth stage investing.