After securing $180 million in Series C funding in September to accelerate growth and meet the increasing demand for flexible rentals, it marks Blueground’s first investment in the rapidly-growing proptech space, and the company will become a strategic investor in Tabas while gaining exposure to the Latin American [LatAm] market.
Blueground co-founder and CEO, Alex Chatzieleftheriou, will also join Tabas’ board of directors as a result of the investment.
Founded in early 2020 and based in São Paulo, Tabas is aiming to design the future of living in the Latin American market by renting out apartments for flexible stays of at least one month to millennials and business professionals. With 360 apartments in its portfolio across São Paulo and Rio de Janeiro, Tabas will use the incoming investment to expand to 1,200 apartments in Brazil by the end of 2022.
Alex Chatzieleftheriou, co-founder and CEO of Blueground, said: “Tabas entered the market during one of toughest economic times, and the team’s strong performance and tenacity is what attracted Blueground to invest in the growth of Tabas. There is huge market potential in Latin America, and a natural synergy between our two companies; I am looking forward to paving the way for the future of living together.”
Leonardo Morgatto, founder and CEO of Tabas, said: “We’re excited to have Blueground as our lead investor in such a pivotal moment in our growth. With this new capital and opportunity to tap into Blueground’s eight years of experience in the sector, we’re able to support our growth and new market launch as well as invest further in our technology and talent to hit our key milestones in the next year.”
The strategic partnership is the first to come as part of Blueground’s accelerated growth strategy.
Its interest in Tabas came about as a result of the company achieving a record-breaking year in 2021 – surpassing $145 million in revenue and maintaining an average 94 per cent global occupancy throughout the year. Blueground exceeded 5,500 apartments and hosted over 20,000 guests throughout the year while also adding three more cities to its network in the last quarter of 2021.
Now projecting $265 million in revenue in 2022 and active in 18 markets across North America and EMEA, Blueground plans to grow to 50 cities and 30,000 apartments across the world by 2025.