During the pandemic and the associated transition to remotework, many have taken advantage of the newly discovered flexibility to try to live in different locations.
One startup that is ready to profit from now on Zeus Living, This focuses on giving people a “flexible life” option, SIG..
Initialized Capital, CEAS Investments, TI Platform, NFX, Opendoor’s Eric Wu and Miras also participated in the funding, bringing the total startup to $ 125 million. The company refused to reveal its current valuation, but was valued at $ 205 million at the time of the final price increase in 2019.
Zeus Living began by refurbishing a landlord’s home and renting a furnished property to primarily relocated workers to stay for a new type of corporate housing for 30 days (or more). Since then, it has evolved into a company that has broadened its focus and offered people more options to move, not only to corporate employees, but generally with less commitment.
Kulveer Taggar, CEO and co-founder, said: “For the past 18 months, we have replaced corporate homes for old and solid rentals by providing beautifully designed homes equipped with reasonable prices and flexible conditions where residents want to live. We are challenging the market. “
Given that Zeus Living made the headline for dismissal at the beginning of the pandemic, it’s a cool comeback story. About 80 people, or about 30% of the company. And the demand is there.
As evidence of a pandemic and the resulting shift to work, Zeus Living said last year that an average of 129 nights stayed “six-fold” in the number of residents booking leases without a pre-determined end date. Stated.
Basically, Taggar believes that there is a “new American dream” that does not include buying a home as a symbol of someone “making it.”
“we Take a look at this new generation now. That goal or dream has nothing to do with buying a home, “he told TechCrunch. “They want to invest in the experience of their possessions. They want more mobility. And they just want to do it without a lot of headaches and hassles.”
In 2019, Zeus Living provided 2,400 homes on the premises and partnered with homeowners to manage and rent real estate. Today, it has grown to nearly 5,000 homes in 96 cities in the United States, including Austin, Miami, Portland, and Philadelphia. The occupancy rate is 87% compared to 82% in 2020, but “revpar” (revenue of homeowners who manage real estate) has increased by 21% this year compared to last year.
Over time, the inhabitants spent more than 1.4 million nights with Zeus, of which 811,562 nights were in the middle of a pandemic. The company is approaching $ 250 million in lifetime booking revenue.
Since the furlough in March 2020, the company has been able to hire some of the people who were forced to furl. According to Taggar. However, it has 122 employees and continues to operate relatively lean.
The company emphasizes that unlike investor Airbnb, it manages homes, from curation to design, real estate management and services, not the market. In addition, the price of the house will be a stay of 30 days or more, not every night. However, Airbnb is a Zeus channel.
According to Taggar, Zeus allows users to browse thousands of homes they manage and choose the dates they want to stay there. It’s all accessible from your mobile phone, whether it’s 5 weeks or 5 months. Residents also do not need to set up utilities or Wi-Fi. Zeus handles that too.
“You are flexible and can leave with just two weeks of notice,” he said. “And because Zeus made a lot of effort to manage the house in the first place, you can believe that the experience will be good. We inspected it, and it’s safe. I know that, and then we design it to be comfortable for you to live in. “
According to Taggar, Zeus has been making three to four times more revenue annually since its inception in 2015, but temporarily surged when the pandemic began.
“But we’re back on the road,” he said. “We make the rental experience very modern and turnkey, even if the behind-the-scenes operations to do all the work are very complex and complex.”
Going forward, we will utilize the new capital to focus on growth and expansion.
“We have limited supply in all markets and want to go to more homes,” Taggar told TechCrunch. “We also want to invest in and continue to improve the online experience for homeowners and residents.”
In fact, Zeus Living has had an unfulfilled demand of $ 40 million in the last 12 months, he said.
“We know where people want to live and how much they are willing to pay for a flexible life,” he said.
Garry Tan, founder and managing partner of Initialized Capital, is a repeat investor in Zeus Living, leading seed and series A rounds and investing in series B and C financing.
Overall, Tan believes that the world of wealth management “stays in the same place as taxi companies before they were dispatched.”
He believes Zeus Living has created something that real estate owners “set and forget” a bit. At the same time, it helps meet the needs of those who are looking at flexible living options in the “absolutely best market”.
“It was We’re entering this new stage where people don’t have to be in a handful of cities, “he told TechCrunch. “You can be anywhere in the country, and this new idea for FlexLiving is to make that potential more accessible to everyone.”
In Tan’s view, what makes Zeus even more special is that residents can “like the locals” because they can find properties in desirable areas of the town, which are usually known only to the people living in the city. You can “live”.
“In reality, it’s much harder to get these places, so it’s also a place where customers want to go, so it’s much more profitable,” says Tan.
Of course, Zeus Living isn’t the only flexible rental space player. guildA startup based in Austin, Texas, transforms an apartment into a comfortable short-term accommodation for business and other travelers. $ 25 Million Series B Hospitality startup Sonder raised $ 170 million in a $ 1.3 billion valuation last June, but the company, which rents a serviced apartment similar to a boutique hotel, could be a competitor to Airbnb. Please note in particular.
Zeus Living closes on $55M to offer flexible, furnished rentals as it expands beyond corporate housing – TechCrunch Source link Zeus Living closes on $55M to offer flexible, furnished rentals as it expands beyond corporate housing – TechCrunch
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