Zeus Living Raises $55M to Expand Flexible Furnished Rentals

The Rise of Flexible Living and Zeus Living's $55 Million Funding

The widespread adoption of remote work, accelerated by the recent pandemic, prompted a significant number of individuals to explore living in diverse locations, capitalizing on increased flexibility.

Zeus Living, a startup focused on providing “flexible living” solutions, is well-positioned to benefit from this trend. The company has recently secured $55 million in a funding round spearheaded by SIG.

Investment Details and Company Growth

Initialized Capital, CEAS Investments, TI Platform, NFX, Opendoor’s Eric Wu, and Miras also contributed to the financing. This brings the total funding raised by the startup to $125 million.

While the company has not disclosed its current valuation, it was previously valued at $205 million during its last funding round in 2019.

Initially, Zeus Living focused on redesigning landlords’ properties and offering furnished rentals, primarily targeting relocating professionals for stays of 30 days or longer – a novel approach to corporate housing.

The company has since broadened its scope, now providing a wider range of individuals, not solely corporate employees, with more adaptable relocation options and reduced commitment requirements.

Adapting to Changing Needs

“From the beginning, we’ve provided a ‘home’ for those traveling for work, as well as for grandparents spending extended time with their grandchildren, individuals seeking healthcare, and families undergoing home renovations,” stated CEO and co-founder Kulveer Taggar.

“Over the past 18 months, we have surpassed the traditional corporate housing model and are actively challenging the outdated, inflexible rental market by offering beautifully designed homes at reasonable prices with flexible lease terms in desirable locations.”

This represents a significant turnaround, considering Zeus Living initially responded to the pandemic’s onset by implementing layoffs affecting approximately 80 employees, or 30% of its workforce.

Demand for these services remains strong, as evidenced by a “6x increase” in residents opting for leases without a fixed end date, averaging 129 nights per stay, over the past year.

A New Vision of the American Dream

Taggar posits that a “new American dream” is emerging, one where homeownership is no longer the primary symbol of success.

“The current generation increasingly prioritizes experiences over possessions, desires greater mobility, and seeks to achieve this without unnecessary complications and burdens,” he explained to TechCrunch.

In 2019, Zeus Living managed a portfolio of 2,400 homes, collaborating with homeowners to manage and rent their properties. This number has now expanded to nearly 5,000 homes across 96 U.S. cities, including Austin, Miami, Portland, and Philadelphia.

Occupancy rates stand at 87%, up from 82% in 2020, and “revpar” (revenue per available property) has increased by 21% this year compared to the previous year.

Pandemic Impact and Future Outlook

Residents have collectively spent over 1.4 million nights with Zeus, with 811,562 of those nights occurring during the pandemic. The company is nearing $250 million in total lifetime booking revenue.

Following the March 2020 layoffs, the company has rehired some of its former employees, according to Taggar, but continues to operate with a relatively lean team of 122 individuals.

Unlike its investor Airbnb, Zeus Living operates as a direct manager of properties, handling curation, design, property management, and service – rather than functioning as a marketplace.

Zeus homes are specifically priced for stays of 30 days or longer, although Airbnb does serve as a distribution channel for the company.

Convenience and Flexibility for Residents

Taggar emphasizes that users can easily browse and book homes for periods ranging from five weeks to five months directly through their mobile devices.

Residents are also relieved of the responsibility of setting up utilities or Wi-Fi, as Zeus handles these arrangements.

“Residents have the flexibility to depart with just two weeks’ notice, confident in a positive experience due to Zeus’s meticulous curation, inspection, and design of each home, ensuring safety and comfort,” he stated.

While Zeus experienced a temporary slowdown in revenue growth during the pandemic’s initial phase, it is now regaining momentum.

“We are streamlining the rental experience, making it modern and hassle-free, even though the underlying operations are complex,” Taggar added.

Future Plans and Market Position

The company intends to utilize the new capital to fuel growth and expand its property portfolio.

“We are currently facing supply constraints in all our markets and aim to acquire more homes,” Taggar told TechCrunch. “We will also continue to invest in and enhance the online experience for both homeowners and residents.”

Zeus Living has reportedly experienced $40 million in unmet demand over the past year.

“We understand where people want to live and how much they are willing to pay for flexible living arrangements,” he said.

Garry Tan, founder and managing partner of Initialized Capital, is a recurring investor in Zeus Living, having led its seed and Series A rounds and participated in its Series B and C financings.

Disrupting the Property Management Industry

Tan believes the property management industry is lagging behind, comparing it to the taxi industry before the advent of ride-hailing services.

He views Zeus Living as offering a “set and forget” solution for property owners while simultaneously addressing the growing demand for flexible living options in prime locations.

“We are entering a new era where individuals are no longer confined to a limited number of cities,” he told TechCrunch. “The possibility of living anywhere in the country is becoming increasingly accessible, and FlexLiving is making that a reality for everyone.”

Tan highlights Zeus’s ability to secure properties in desirable, locally-known areas, allowing residents to “live like a local.”

“Acquiring these locations is challenging, but it also translates to higher profitability, as these are the areas where customers most desire to reside,” Tan explained.

Zeus Living operates within a competitive landscape. The Guild, based in Austin, Texas, transforms apartments into short-term accommodations and raised $25 million in Series B funding in January 2020. Sonder, a hospitality startup, secured $170 million at a $1.3 billion valuation in June 2020, though it primarily competes with Airbnb by offering serviced apartments.