New raise will bring total funding to over $150M, with plans to expand to 5 more markets by the end of 2021
SAN FRANCISCO, Aug. 24, 2021 (GLOBE NEWSWIRE) — Bungalow, one of the largest and fastest growing marketplaces for roommate living in the United States, today announced it will raise $75M in Series C funding, led by Deer Park Road, with participation from existing investors including, Atomic, Founders Fund, Coatue and Khosla Ventures, bringing the company’s total funding to date to over $150M.
Despite being in the midst of a pandemic, Bungalow has experienced rapid market recovery, with traffic to the site in Q2 of 2021 increasing by 108% when compared to the same time last year and now surpassing pre-Covid levels of 2019 by more than 40%. With businesses and offices reopening, and more people wanting to live in cities again, Bungalow is seeing increased demand and pricing recovery in all of key markets. Roommate Chat volume, which connects prospects with current housemates, increased more than 2x from March 2021 to June 2021 and renewal rates are up +15pts vs. YA.
“As you might imagine, the rental market was one of the most impacted sectors of residential real estate during the pandemic and I fully credit the strength of our team and our platform in positioning Bungalow for a stronger comeback than I could have imagined possible,” said Andrew Collins, CEO and Co-founder of Bungalow. “As we re-emerge and recover from a global crisis, this infusion of capital puts us in a very strong financial position to capture both homeowner and resident demand. This new funding and support from our investors enables us to continue to innovate and accelerate our growth as we expand to new markets and bring the Bungalow experience to thousands more across the country.”
Founded in 2017, Bungalow was inspired by the difficulties facing renters in search of affordable living and a sense of community. These two things combined were nearly impossible to find. Collins, along with his COO and co-founder, Justin McCarty, identified a gap in the residential real estate market and seized the opportunity to create accessible rental options for people looking to move to new cities without an established personal network. Since then, Bungalow has helped countless people find community through co-living, and more recently, Bungalow has expanded its product offering to bring its digital first and convenient renting experience to whole homes. Residents value the differentiated experience Bungalow delivers, validated by its best-in-class renewal rate.
“Human connection is a premise that has never been so sought after, and we have been incredibly impressed with Bungalow’s ability to offer beautiful homes in the locations where urban renters want to live, while offering access to an established community,” said Scott Burg, Chief Investment Officer, Deer Park Road. “We are thrilled to be joining Bungalow on this journey, and look forward to supporting their growth as they continue to innovate and expand to new markets.”
As a two-sided marketplace, Bungalow also helps homeowners and investors earn up to 50% more NOI on their investment properties than they would with traditional property management systems. By partnering with Bungalow, homeowners benefit from the tech-enabled platform that provides AI-driven pricing, and seamless integration in top marketing channels delivering 2x more leads and occupancy in half the time compared with industry averages. Additionally, Bungalow is unlocking the Single Family Home market in novel and sustainable ways for investors, offering access to top-tier markets with historically strong appreciation where millennial renters want to live.
Serving 3000+ residents and over 700 homes, Bungalow currently operates in 16 major hubs across the U.S. with plans to expand into 5 additional cities by the end of 2021 including Miami, Tampa, Atlanta, Houston and Phoenix.
ABOUT BUNGALOW
Bungalow is a residential real estate platform providing beautiful homes with great roommates, paired with a seamless digital-first experience for early career professionals. The company takes care of everything from matching great roommates and furnishing a home’s common areas to streamlining rent and utilities payments and handling service requests, removing friction from the rental experience. In addition, Bungalow helps its residents create a thriving community through its network. Bungalow is able to offer rooms in the most desirable neighborhoods by working directly with homeowners who are looking for a guaranteed income stream but don’t want to sell their homes. Founded in 2017 by Andrew Collins and Justin McCarty, the company currently has more than 3,000 housemates in hundreds of homes across 16 markets. For more information visit www.bungalow.com or follow Bungalow on Instagram, Twitter, and Facebook.
MEDIA CONTACTS:
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