QuintoAndar raises $12 million for a wider footprint
22 Dec 2016
QuintoAndar, a start-up focused on the residential rental market of Brazil, raised $12.6 million U.S. in a series B funding round from New York-based Acacia Partners, which led the investment, and Qualcomm Ventures.
The company said, it will use the money from Acacia Partners to grow its tech team and expand its service to five more major Brazilian cities in other states. In the past few years, the company focused much of its effort on the greater São Paulo area and Campinas.
QuintoAndar aims to handle the entire process of renting a home in Brazil online, eliminating the need of co-signers and paying for the seguro fiança. The seguro fiança is a security deposit, which is not returned or applied to the rental costs, and is usually mandatory for residential rentals in Brazil.
AIM Group published a comprehensive analysis of QuintoAndar in its CIR dated Oct. 8, 2015. Then we also explained how the company differentiated itself from local real estate classifieds.
In fact, QuintoAndar also is an online real estate agency, in the sense it lists on the country’s major real estate sites, has the local real estate registry, and handles the entire renting process, taking 100 percent of the first monthly rental payment, and an additional fee of eight percent for managing the property from then on.
In Brazil and elsewhere, renting a home can take up to 30 days, not to mention the endless paperwork an individual has to work through and sign off.
QuintoAndar said it has been growing by 25 percent month-on-month on average since November 2015, with nearly “zero investment in marketing.” In November, it handled more than 10,000 visits to apartments – just in São Paulo.