Brazilian digital real estate brokerage Loft has raised $100 million at a $2.9 billion valuation. The new funding round was led by investment manager Baillie Gifford and included existing investors Tiger Global, Andreessen Horowitz, Fifth Wall, and QED. Besides helping people buy and sell homes, Loft offers services around insurance, renovations, and rentals.
No formal MLS in Brazil: In the United States, prospective buyers and sellers have the benefit of MLSs, which are private databases that are created, maintained and paid for by real estate professionals to help their clients buy and sell houses. Loft itself spent years and many dollars in creating its own such databases for the Brazilian market, TechCrunch noted.
PropTech is on Fire: The additional funding round values the startup at $700 million above the valuation announced less than a month ago when the brokerage raised $425 million.
Rapid Growth: Founded in 2018, Loft has grown from 450 employees last January to 700 today. The firm entered the mortgage business in 2020 by acquiring one of the largest mortgage brokerage companies in Brazil in 2020. The startup now ranks among the top-three mortgage originators in the country.
Heard on the Street: Founder and Co-CEO Mate Pencz: “We’re now going into this year extremely well-capitalized and I think that in addition to doubling down on the core business, there might be strategic acquisitions also on the horizon. We also plan to make Loft as much of a regional and potentially global business, following in the footsteps of some of the other Brazilian companies who recently have been expanding globally.” [Reuters+TechCrunch]