Following its Series C funding round of $180 million, Greek-founded Blueground is leading the $14M Series A round of Brazilian proptech startup Tabas. This marks Blueground’s first investment in the fast-growing proptech ecosystem, as well as in the Latin American market. With Tabas, they are also further building on the commitment to deliver flexibility in real estate.
Headquartered in NYC, Blueground offers a platform for renting flexible 30 days+ stays in fully furnished apartments, working as an intermediate between customers and property managers. With a portfolio of 4,500+ apartments in 15 cities across the US, Europe, and the Middle East, Bluenground is using its latest funds to expand around the world by 2025.
With this investment, the company is tapping into the emerging proptech market in Latin America, where Brazil is at the forefront (with 65% of all proptech companies in 2019). They are also keeping the focus on rental flexibility, as Tabas is offering a similar model.
Tabas’ co-founders went through the same kind of disappointment with existing flexibility solutions for temporary relocations. While Blueground co-founder Alex Chatzieleftheriou had a painful experience living out of hotel room during long-term business travels, for Leonardo Morgatto, the co-founder and CEO of Tabas, it was the terrible rental experience he had during an internship in London that opened his eyes to the opportunity for solutions in the space.
Together with his co-founder Simone Surdi, they launched their long-term rental business in Brazil. The pandemic hit on the global real estate market brought a period of uncertainty and financial struggle, Surdi tells Bloomberg. They were back on their feet after attracting $1.5 million from Greece-based VentureFriends in October 2020, and later on raising $3.6 million via Brazil’s certificates of real estate receivables.
Their resilience through tough economic times for the real estate market is what impressed Blueground.
In the new round, Tabas raised both equity and debt. The equity part will be invested in hiring staff, branding, as well as technology and processes, while the debt will go into apartment renovations, and the purchase of TVs, dressers, and beds. By the end of 2022, they aim to have a portfolio of 1,200 apartments, consolidate their business in Sao Paulo, but also expand to new cities in Brazil, and to Mexico City starting 2023.
Blueground is a contender for the unicorn status in 2022, having reached a $750 million valuation after raising its Series C.