Blueground Raises $180M as Demand for Flexible Rentals Continues to Grow
The ongoing shift toward remote and hybrid work amid the pandemic has led many professionals to adopt a more nomadic lifestyle, forgoing traditional mortgages or 12-month leases for more flexible rental options. This has meant big success for companies looking to innovate the space, with everyone from two-year-old startup SplitSpot to proptech unicorn Pacaso garnering investor support for their unique approaches.
The latest standout is Blueground, which helps people find short-term furnished apartment rentals. The NYC-based startup announced Monday it closed on a $180 million Series C round, which comprises $140 million in equity financing from WestCap and others, as well as a $40 million debt facility from Silicon Valley Bank. This fresh funding brings Blueground’s total valuation to $750 million, according to Bloomberg.
With more than 5,000 fully furnished apartments across 15 major cities globally, Blueground aims to make it easier for folks to live where they want, when they want without being tied to lengthy leases. It also offers a way for landlords to make extra money on open units, regardless of occupancy rate.
This model has proven to be successful, even in such a tumultuous year. In fact, in the early days of the pandemic, when most countries were enforcing strict quarantine measures, Blueground claims it was able to maintain 92 percent occupancy of units. It has also added 1,400 new rental units to its platform over the last 18 months, launched in three new markets — Denver, Austin and Vienna — and reached cash flow positivity.
Now, Blueground is in “hyper growth mode” in light of this new funding, and says it is on track to hit $140 million in revenue by the end of this year. By 2025, the company expects to be in 50 cities around the world.
“We founded Blueground with a vision of offering our guests a home in every major city, giving them the flexibility and confidence they need to explore the world,” co-founder and CEO Alex Chatzieleftheriou said in a statement. “With the new living and working paradigm, we are ideally positioned to meet people’s increasing demands for greater flexibility. We’re incredibly excited about the vast growth potential, which will be accelerated by this latest round of funding.”