Quinto Andar Exchanges Equity for Media Presence With New Collaboration

Brazilian portal Quinto Andar has closed a transaction with 4Equity Media Ventures, a startup specializing in growing startups via media marketing in exchange for equity.

4Equity will take a small equity stake in Quinto Andar in exchange for handling the portal's multimedia marketing in a symbiotic relationship in which Quinto Andar will work with 4Equity to expand its reach in suburban areas and more remote areas.

The campaign will focus on out-of-home media, radio and regional digital influencers.

The terms of the deal were undisclosed but the Brazil Journal suggests it will be a minor stake given 4Equity's diminutive stature compared to Quinto Andar, which has a valuation of circa $5Bn.

Felipe Hatab, co-founder at 4Equity Media Ventures, said:

"QuintoAndar liked the proposal because to enter small cities they would have to close several agreements with very small players — and we are going to concentrate all of this for them.

"Our inventory has a very broad mix and we will be able to change our deliveries according to Quinto Andar's strategy changes, if they so choose."

Renato Mendes, co-founder and 4Equity Media Ventures, added:

"Quinto Andar is the most valuable asset in the proptech sector, which partly motivated our decision [to invest].

"It's a 'winner-takes-all' industry and we think they're going to be the winners. They also have a very strong M&As and internationalization strategy."

Quinto Andar was founded in 2013 in Sao Paolo, Brazil, and has since achieved unicorn status, hoovered up over $750M in funding and made no fewer than five major acquisitions to become one of the most powerful marketplaces in Latin America.

But the portal giant is set to face questions about 'monopolistic practices' after it emerged that The Mexican Association of Real Estate Professionals is preparing a complaint against Quinto Andar for enforcing unfair market conditions due to its ownership of Mexico's two biggest portals (Inmuebles24 and Vivanuncios), which the firm has owned and operated since 2021 and 2022 respectively.