QuintoAndar Raises $120M, Reaching $5.1B Valuation

QuintoAndar Secures Additional Funding

Brazilian proptech company, QuintoAndar, has successfully raised $120 million in new funding, coming just under three months after a previously announced $300 million Series E round.

This latest investment was co-led by Greenoaks Capital and Tencent, a Chinese technology conglomerate. Existing investors also participated in the round.

Valuation and Funding History

As a result of this extension, QuintoAndar’s valuation has increased to $5.1 billion, a rise from the $4 billion valuation established in late May. Since its founding in 2013, the startup has now secured over $700 million in funding.

Ribbit Capital initially spearheaded the first portion of the Series E funding.

Expanding Services and Market Position

QuintoAndar positions itself as a comprehensive solution for long-term rentals, facilitating connections between tenants and landlords. The company broadened its services last year to include connecting individuals looking to buy and sell homes.

The long-term vision for QuintoAndar is to become a complete real estate platform, offering services such as mortgages, title insurance, and escrow services.

Strategic Acquisition of Atta Franchising

To further this goal, QuintoAndar recently acquired Atta Franchising, a São Paulo-based mortgage broker established seven years ago.

This acquisition is intended to expedite the company’s ability to provide mortgage services to its user base.

According to CEO and co-founder Gabriel Braga, QuintoAndar is also considering offering transaction services independently of its marketplace, collaborating with other brokers.

Geographic Expansion and Growth Metrics

This year has seen QuintoAndar expand its operations into 14 new cities throughout Brazil.

Future plans include entering the Mexican market as the company’s first international venture, though a specific timeline has not been announced.

Currently, QuintoAndar manages over 120,000 rentals and processes approximately 10,000 new rentals each month.

The rental platform is active in 40 Brazilian cities, while the home-buying marketplace operates in four – São Paulo, Rio de Janeiro, Belo Horizonte, and Porto Alegre – and is facilitating over 10,000 sales annually.

Future Growth Strategy

QuintoAndar remains open to potential acquisitions of companies that can accelerate its growth or introduce new capabilities.

However, Gabriel Braga emphasized that the company’s primary focus remains on organic growth and internal innovation.

“We are open to considering acquisitions, but our core strategy centers on accelerating our own innovation and fostering organic expansion,” Braga stated.

The Rationale Behind a Swift Funding Round

According to Braga, the Series E funding round garnered significant investor interest, exceeding initial expectations with participation from many, and a number of others unable to secure a position.

He explained that both Greenoaks and Tencent were initially unable to invest due to scheduling conflicts.

“Discussions continued, and they subsequently expressed renewed interest following the initial round’s completion,” Braga stated. “The company didn’t have an immediate need for additional capital. However, consistent surpassing of projected forecasts, as presented to investors, prompted this extension.”

The appeal of Greenoaks lay in their commitment to a long-term investment strategy, offering what was described as “perpetual capital without a fixed timeline,” Braga noted.

“Our objective is to establish a lasting enterprise with a substantial lifespan, and aligning with investors who share this long-term perspective is crucial,” he elaborated.

Neil Shah, a partner at Greenoaks, conveyed his firm’s conviction that QuintoAndar’s work will “radically alter how real estate is bought and sold, fostering greater openness, broadening housing choices for Brazilians, significantly streamlining the process for property owners, and stimulating increased real estate investment nationwide.” He also anticipates substantial growth opportunities for the company throughout Latin America.

“We anticipate a long-term partnership,” he added.

QuintoAndar also values the expertise Tencent has cultivated within the Chinese market.

“We are keen to draw insights from their experiences and those of other innovative Chinese companies,” Braga commented.

QuintoAndar is not alone in attracting substantial investment within the Brazilian proptech sector; in March, Loft, a São Paulo-based digital real estate platform, announced a $425 million Series D funding round spearheaded by D1 Capital Partners of New York. Shortly after, a $100 million extension was revealed, bringing the company’s valuation to $2.9 billion.