Fresh capital of 45 million dollars was secured by Blue ground, in order to increase its investments in technology and the engineers who support it, as well as to strengthen its network of apartments, also entering new cities. The new investment came nearly 2.5 years after the mammoth $180 million financing (40 million was debt financing from Silicon Valley Bank) raised by the real estate holding company, continuing, despite the market turmoil in recent years, to have as its ultimate goal its introduction to the American stock market. In 2021, its capitalization reached 750 million dollars, with it now moving upwards, while, as information states, the company “is close to profitability”. To date, it has a portfolio of 15,000 apartments in 32 cities around the world, aimed at individuals as well as businesses that rent them and provide them to their employees.
According to a related announcement, the new financing round includes funds from the American fund Susquehanna Private Equity Investments as well as from existing investors, such as WestCap which also participated in the previous funding round. At the same time, the company raised a loan from Barclays with the participation of Morgan Stanley, Deutsche Bank and HSBC, replacing and refinancing a previous loan from Silicon Valley Bank. It is recalled that the bank, which provided loan financing mainly to start-ups, found itself in the eye of the storm as went bankrupt last March, with First Citizens to acquire it by taking over all its deposits, its loan portfolio as well as assets.
Expanded to the Thai market and Japan.
Blueground was founded in 2013 by Alexandros Hatzielephatriou, with its main activity being the renting of furnished homes. That is, after reaching an agreement with the owners to lease their properties, he proceeds to furnish and equip them, subletting them for a month or more. Now of course, the purpose of the company is to become asset light, while incorporating services that will allow it to enter markets without channeling a large amount of capital, as is the case with its traditional operating model. Thus, Blueground expanded into the Thai market, recently entering into a franchising agreement with Chic Republic Company Limited to offer apartments in the cities of Bangkok, Rayong, Chonburi and Chachoengsao under the Blueground Thailand brand.
Blueground signed a similar agreement with Mitsubishi Real Estate Company in Japan. In the last 5 months, the company has signed 5 such agreements, while also developing a partner network. Blueground’s revenue in 2022 reached $300 million, a 124% increase compared to the previous year, while 2023 showed a 70% increase to $560 million. Finally, it is possible that the company’s plans include acquisitions new companies, also due to the changes presented by the specific market (consolidation). For example, already in the past with the Brazilian Tabas vehicle, the company expanded into the Latin American market, while it has acquired the on-demand furnished accommodation company Travelers Haven and Nestpick.
