SAN FRANCISCO, Aug. 24, 2021 (GLOBE NEWSWIRE) – Bungalow, one of the largest and fastest growing markets for roommates living in the United States, today announced it will raise $ 75 million $ 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 $ 150 million .
Despite being in the midst of a pandemic, Bungalow has seen a rapid market recovery, with traffic to the site in the second quarter of 2021 increasing 108% from the same period last year and now exceeding pre-Covid 2019 levels of over 40%. With the reopening of businesses and offices and more and more people wanting to live in cities again, Bungalow is seeing increasing demand and recovering prices in all key markets. Roommate Chat volume, which connects prospects with current roommates, has grown more than 2 times from March 2021 to June 2021 and renewal rates are up + 15pts from YA.
“As you can imagine, the rental market has been one of the most affected residential real estate sectors during the pandemic and I fully credit the strength of our team and our platform in positioning Bungalow for a stronger return than I could have imagined possible, ”said Andrew Collins, CEO and co-founder of Bungalow. “As we reappear and recover from a global crisis, this injection of capital puts us in a very strong financial position to capture demand from homeowners and residents. This new funding and the support of our investors allow us to continue to innovate and accelerate our growth as we expand into new markets and bring the Bungalow experience to thousands more across the country.
Founded in 2017, Bungalow was inspired by the challenges tenants face in finding affordable housing and a sense of community. These two things combined were almost impossible to find. Collins, along with its 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 relocate to new cities without personal network established. Since then, Bungalow has helped countless people find community through coliving, and more recently Bungalow has expanded its product offering to bring its first digital and convenient rental experience to entire homes. Residents appreciate the differentiated experience offered by Bungalow, 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 deliver beautiful homes in places where urban tenants want to live, while providing access to a community. established, “said Scott Burg, Director of Investments, Deer Park Road. “We are delighted to join Bungalow on this journey and look forward to supporting their growth as they continue to innovate and expand into new markets.”
As a two-sided market, 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, owners benefit from the technology platform that provides AI-based pricing and seamless integration into major marketing channels, delivering 2x more leads and occupancy in half the price. time than industry averages. Additionally, Bungalow opens up the single-family home market in innovative and sustainable ways for investors, providing access to leading markets with historically strong appreciation where Millennial tenants want to live.
Serving over 3,000 residents and over 700 homes, Bungalow currently operates in 16 major centers across the United States and plans to expand to 5 additional cities by the end of 2021, including Miami, Tampa, Atlanta, Houston. and Phoenix.
ABOUT THE BUNGALOW
Bungalow is a residential real estate platform offering beautiful homes with great roommates, coupled with a seamless digital first experience for early-career professionals. The company takes care of everything from matching roommates and furnishing a home’s common areas to streamlining rent and utility payments and processing service requests, eliminating friction. of 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 areas by working directly with homeowners who are looking for a guaranteed income but do not want to sell their home. Founded in 2017 by Andrew Collins and Justin McCarty, the company currently has more than 3,000 roommates in hundreds of homes in 16 markets. For more information visit www.bungalow.com or follow Bungalow on Instagram, Twitter, and Facebook.