Loft receives the largest investment in the country's history and becomes the tenth Brazilian unicorn.
We are pleased to announce that one of our clients, the proptech company Loft, with less than four years of operation, has broken a new record in the country by receiving the largest investment in the history of a Brazilian startup.
The US$425 million investment, approximately R$2,3 billion, was led by the US fund D1 Capital and included the participation of at least a dozen other venture capital and private equity institutions, such as Tiger Global, Andreessen Horowitz, Silver Lake, and Monashees. But the company's investments don't stop there. Loft's Series D round surpassed the US$400 million investment raised by the digital bank Nubank earlier this year with the funds GIC, Whale Rock, and Invesco.
Furthermore, the investment in the real estate buying and selling platform has brought the proptech company's market value to US$2,2 billion, further consolidating its unicorn status, achieved in early 2020 after raising US$175 million in its Series C funding round.
Loft co-founder and CEO Mate Pencz says that both the investment and the company's current valuation were a consequence of a year of growth for the platform. According to him, the main success factors were the intensification of e-commerce culture in Brazil, as well as the possibility of buying real estate in a 100% digital way during a time of restrictions imposed by the Covid-19 pandemic.
The company, which buys and sells residential apartments using data technology, wants to increase the number of properties offered in the neighborhoods where it operates. Currently, Loft only operates in the cities of São Paulo and Rio de Janeiro. The main focus is to quintuple its portfolio of apartments in São Paulo and Rio, as well as the number of clients, which currently stands at 6 according to updated data from February 2021, considering all real estate products.
The company is considering expanding into new cities, with the same goal of offering consumers a good selection of quality apartments per neighborhood and the best real estate buying and selling experience on the market.
Next Steps
After receiving the largest investment in the history of the Brazilian startup ecosystem, the company's next steps involve investing a large portion of this amount in creating new platform functionalities, as well as enhancing the user experience, seeking new opportunities to strengthen its core business: the sale and purchase of real estate through the platform. The expectation is that, with investment, this journey will become increasingly digital.
Another great piece of news is that with the new capital injection – the largest round ever made in Brazil – the Brazilian company Loft becomes the most valuable real estate startup outside the United States and China, and the tenth most valuable residential real estate startup in the world.
An ERP (Enterprise Resource Planning) system makes all the difference for companies seeking investment in the market, combining integrated functionalities in financial management, entirely in the cloud, reducing cycles, leveraging real-time visibility of production management processes, order management, budget management, and the overall financial consolidation of the company. All this is done with the Oracle NetSuite Global ERP, designed to support growing companies like Loft, one of our main clients. Active Cloud Solutions is proud to be part of this success story.
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