Loft, a Brazilian Real Estate Startup, Raises $425 Million at a $2.2 Billion Business Valuation

By Mariliana Fotopoulou Tuesday, March 23, 2021

Loft, a Brazilian real estate startup, has raised $425 million in the latest funding round headed by New York-based D1 Capital Partners. The business doesn't intend to stop there as it is already in talks to raise a further $100 million.

Real estate broker and investor shaking hands.

Expanding Startup Environment in Latin America

Both new and existing investors took part in the Loft’s Series D funding round, including Advent, Altimeter, DST, Silver Lake, Soros, Tarsadia, Tiger Global, Andreessen Horowitz, and others. After the latest funding round, the real estate company now has a business valuation of $2.2 billion, a massive leap from its prior business valuation reached in January last year.

Loft raised $175 million in January of last year. The real estate company said it plans to use the proceeds to expand across Brazil, the rest of Latin America, and beyond. The Wall Street Journal reports that the company is already looking to raise an additional $100 million at a $2.8 billion business valuation.

Last year, the real estate startup said the number of listings on its website surged 10 to 15 times, according to the company’s co-founder and co-chief executive Mate Pencz. The company now manages over 13,000 property listings in around 130 regions across São Paulo and Rio de Janeiro, in partnerships with more than 30,000 brokers.

“We did more than 6x YoY growth with many thousands of transactions over the course of 2020. We’re now growing into the many tens of thousands, and soon hundreds of thousands, of active listings,” said Pencz.

Pencz added that Loft recorded a significant surge in business revenues and gross merchandise value (GMV) last year. He added that these revenues and GMV figures are now “multiples higher from where they were” and that his company has “a very clear horizon to profitability.”

The Brazil-based digital real estate startup has closed an impressive funding round amid a rapidly-expanding startup scene in Latin America lately. The startup has generated more than $150 million in annualized revenues in its first full year of operation through over 1,000 transactions.

Loft is looking to transform the real estate sector in Latin America into the ecommerce age through offering online alternatives to replace analog legacy processes. The company’s business model is very similar to the one of Zillow, Pencz notes.

Furthermore, Loft expanded into the mortgage sector last year by buying Invest Mais, one of the largest mortgage brokerage companies in Brazil. The startup is now one of the top-three mortgage businesses in the country, comparing its model to Better.com.

According to Crunchbase, Loft raised $263 million in funding. Other investors that supported Loft include Brazil’s Canary as well as a number of high-profile angel investors, including Max Levchin of Affirm and PayPal, Palantir co-founder Joe Lonsdale, Instagram co-founder Mike Krieger, and David Vélez, chief executive and founder of Brazilian fintech Nubank.

Summary

Loft said it secured $425 million in the latest financing round headed by New York-based D1 Capital Partners, which values the real estate startup at $2.2 billion. The company is already looking to raise another $100 million to reach a business valuation of $2.8 billion.

About the Author


Headshot of Mariliana Fotopoulou

Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.

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