Alex Chatzieleftheriou based Blueground in 2013 after being annoyed with the dearth of short-term furnished residences in Europe. He had been touring as a guide for McKinsey, dwelling virtually completely in lodge rooms for months.

“One time the corporate needed to pay as much as €15,000 for a lodge room in Amsterdam. And there wasn’t sufficient area nor a kitchen to cook dinner,” he stated. “I attempted renting residences for a month or extra. But it was troublesome, and landlords weren’t open to purchasing furnishings. So I had created a enterprise that may clear up my drawback.” 

Some years later, on the top of the pandemic, enterprise was booming for his startup’s class – short-term, furnished condominium rental firms – as folks roamed the world whereas working from residence.

Now that many employers have referred to as staff again to places of work, the demand for non permanent housing has cratered.  

Some of his rivals didn’t survive. Zeus Living and WanderJaunt shut their doorways and returned the keys. Some grew to become acquisition alternatives for Blueground. In 2022, the corporate gained a robust foothold in Latin America by shopping for Tabas, an operator of over 9,0000 furnished residences in Brazil. Within months, Blueground snagged Travelers Haven, a 15-year-old enterprise that gives on-demand housing to staff in practically 20,000 cities all through the United States. In 2023 it picked up Nestpick, a market for furnished condominium operators, like Kasa and Placemakr, giving clients entry to an extra 18,000 residences.

Blueground now operates a world community of move-in prepared properties for stays of a month or extra, and has raised $45 million in Series D funding from new investor Susquehanna Private Equity Investments together with different backers, together with WestCap, Chatzieleftheriou informed TechCrunch. The New York-based firm stated it additionally secured a debt facility from Barclays with participation from Morgan Stanley, Deutsche Bank and HSBC, which changed and upsized the $40 million of debt Blueground obtained from Silicon Valley Bank in 2021.

Blueground leases residences in fashionable neighborhoods after which equips and furnishes them for renters. The firm at the moment manages 15,000 residences in 32 markets in 17 nations. In addition to taking out its personal leases, Blueground has not too long ago launched a franchise that companions with native operators in Japan and Thailand and lists items of third-party operators on its platform.

The firm didn’t reveal its new valuation, however Chatzieleftheriou stated that the corporate’s worth has elevated since its earlier spherical. That valuation was reportedly $750 million after elevating a $140 million Series C in September 2021.  

It’s no secret that the fundraising setting has been extraordinarily difficult for late-stage firms, particularly these within the proptech sector, which has been battered by rising rates of interest. 

Chatzieleftheriou informed TechCrunch that his firm’s quick development and near-profitability helped persuade buyers to fork over the newest funding. 

Sales jumped by 70% to $560 million in 2023 over 2022’s $300 million in gross income, Chatzieleftheriou stated. Net gross sales margin—that’s after it pays landlords for leases—is roughly 35%, he added and he expects Blueground to have constructive money circulate in 2024.

While additional acquisitions appear seemingly, given Chatzieleftheriou’s prediction of trade consolidation, the quick focus is integrating these current purchases. The new funding will go in the direction of market enlargement, know-how investments, and probably the last word monetary aim: an IPO.

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