Brazilian Marketplace QuintoAndar Raises $300m at Extraordinary Valuation

Brazilian transactional online marketplace QuintoAndar has announced a Series E round in which the Sao Paulo-based company raised $300M from investors such as Ribbit Capital, LTS, Maverik and Softbank's Latam fund.

The latest round values the company at an extraordinary $4 billion, a figure which represents a 400% rise on the valuation of the company for its Series D round back in September 2019 which saw it bag $250M in funding and claim unicorn status.  It also puts the company founded in 2012 by Stanford graduates André Penha and Gabriel Braga in the top echelon of online real estate marketplace companies in the world in terms of valuation / market cap:

QuintoAndar is one of a number of companies in Latin America making use of fintech to fundamentally change the cumbersome and bureaucratic nature of both rental and sales transactions in the region. By simultaneously removing the need for a guarantor and guaranteeing rental payments to landlords the company has been able to establish itself as perhaps Brazil's premier destination for renters and is making inroads in the sales market as well despite competing with newly formed giant OLX / Grupo ZAP.

The participation of a lot of Silicon Valley funds in QuintoAndar's journey is testament to the opportunity that many believe the company is tapping into. Like many in the sector, QuintoAndar now plans to move into adjacent services such as mortgage, insurance and escrow to build on the trust already established in its brand.

Speaking to TechCrunch, Ribbit Capital's Nick Huber said of the company:

“Whether you are looking to buy or to rent, QuintoAndar can support customers through the entire transaction process: from browsing verified inventory to signing the final contracts. The ability to serve customers’ needs through each phase of life and to do so from start to finish is a unique capability, both in Brazil and around the world.”

Whether the company now goes for more venture capital further down the line or decides to follow an increasing trend of PropTech companies into the public market either via an IPO or a SPAC merger will no doubt be a topic of speculation given the incredible valuation and fanfare achieved by QuintoAndar.