UK: Flexible short-term rental startup Blueground has closed a $50m Series B round and announced the launch of its London portfolio by the end of the year to expand its global footprint.
The Series B round was led jointly by investment firms Prime Ventures and WestCap Investment Partners. The latter’s founding partner, Laurence Tosi, previously worked as the CFO of Airbnb and held the same long-term position at private equity firm Blackstone.
Blueground’s overall mission is to provide a world in which people can feel at home wherever they live, by offering short-term rental apartments for stays of at least a month that have a unique design and are tech-enabled.
The company selects its properties in desirable locations and leases them out as upgraded furnished apartments for flexible short-term and extended stays.
Blueground says it will use the funding to increase resources in order to continue developing its proprietary technology, product design and guest experience, while broadening its presence across the United States and Europe respectively.
The announcement of Blueground’s funding round coincides with the launch of its London portfolio, which it aims to have live by the end of the year, with plans in place to expand its global footprint to 50 cities around the world by 2023.
London is seen as a prime location as a business and tech hub which is ripe for sustained global investment, particularly in flexible stay accommodations.
The firm envisages leasing 250 premium flats in Central London by the end of next year in the West End, Shoreditch, the City and beyond, while it is also set to launch in Paris and Seattle by the end of the year to access a wider base of new and existing travellers and clientele.
Speaking to UKTN, Blueground co-founder and CEO, Alex Chatzieleftheriou, said: “We are very pleased to be launching in London and to begin operating in a recognised business hub for so many. London is an excellent addition to our existing locations and we are really confident that it will become our largest European market soon.”
“In preparation for our launch in London, we looked closely at the city’s current rental market and the demand for our services, assessing the potential to provide top quality ready-to-move-in apartments with the ultimate goal of transforming our guests’ London living experience.
“For property owners, partnering with Blueground is an ideal solution. We are excited to expand our relationships with leading developers and property managers across the world,” he added.
WestCap partner Charlie Young also said: “WestCap is pleased to partner with Blueground as it continues to execute on its proven strategy of disciplined growth. Blueground’s ability to pair an outstanding guest experience with best-in-class capital efficiency will serve to increasingly distinguish the disruptive business in this fast-paced ecosystem.”
For more information, visit the Blueground website here.