There's a new startup that's taking on the slowing US real estate market by focusing on rentals and doubling down on growth. San Francisco's Zumper has built an end-to-end platform for sourcing, renting out, and other services for apartments across the US, has recently raised another whopping $46 million in funding. Zumper plans to use the capital to continue optimizing its current services for renters and landlords as well as continue its countrywide expansion.
The funding comes on the back of a strong period of growth for the company, which has around 1 million listings on offer and sees 8 million visitors in an average month, with one-quarter of a million landlords using Zumper to connect to them. (Zumper doesn’t disclose revenues, whether it is profitable, or any financials for that matter.)
This Series C was led by media giant Axel Springer and growth-stage investor Stereo Capital, with participation also from previous investors Dawn Capital, Kleiner Perkins Caufield & Byers (KPCB), Breyer Capital, Scott Cook, Goodwater Capital and xfund. Zumper has raised $90 million to date. It’s not revealing its valuation, but a source tells me it’s more than double its previous valuation, which was $108 million two years ago. That likely puts it at over $200 million (but probably less than $300 million).
Axel Springer, with its vast experience in media, and specifically publishing and classifieds, is an obvious strategic backer here. But Blackstone, I’ll note, is a strategic investor of sorts, too.
“As a client of Zumper and one of the largest landlords in the US, Blackstone is keenly focused on technological innovation to improve the rental process for both renters and landlords,” said Sean Muellers of Blackstone who will act as a board observer, in a statement. “Partnering with the best-in-class Zumper team to effectuate this industry change is the definition of a win-win situation.”
Anthemos Georgiades, CEO and co-founder of Zumper, says that the company was built in 2014 on the premise that there were already too many portals online that helped people search for apartments, from low-tech but popular sites like Craigslist through to Zillow and a plethora of classified offerings, both local and national.
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