Monday, January 18, 2021
Bioreports
  • HOME
  • NEWS
  • POLITICS
  • SPORTS
  • HEALTH
  • BUSINESS
  • ENTERTAINMENT
    • Fashion
    • Fitness
    • Food
    • Travel
  • Login
No Result
View All Result
Bioreports
Home Virtual Reality

Airbnb invests as Zeus corporate housing raises $55M at $205M

admin2 admin2 by admin2 admin2
December 9, 2019
in Virtual Reality
0
Airbnb invests as Zeus corporate housing raises $55M at $205M
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

As Airbnb absorbs more and more of the demand for housing, it’s exploring how to monetize opportunities beyond vacation rentals. A marketplace for longer term corporate housing could be a huge business, but rather than build that itself, Airbnb is making a strategic investment in one of the market leaders called Zeus Living and will list its homes on the Airbnb site.
In just four years of redecorating landlords’ homes and renting them for 30+ day stays to relocated workers, Zeus Living has grown to a $100 million revenue run rate. It boosted revenue 300% in 2019, and now has 250 employees and over 2000 homes under management. Zeus make money by charging landlords one free month of usage, and marking up the rent charged to customers. It could rent out a $4,000 per month home for $5,000 plus take the extra month to earn $16,000 in a year.

Zeus CEO and co-founder Kulveer Taggar tells me “I fundamentally believe that a lot of human potential is bound by location. At Zeus, we’re deeply committed to making it easier for people to live where opportunity takes them.” It’s already hosted 27,000 residents for a total of 650,000 nights.
Strong margins, swift momentum, and that megatrend of more mobile workforces have earned Zeus Living a new $55 million Series B round it’s announcing on TechCrunch today. The funding comes from Airbnb, Comcast, CEAS Investments, and TI Platform Management, plus existing investors Alumni Ventures Group, Initialized Capital, NFX, and Spike Ventures. The funding comes at a $205 million post-money valuation.
“The opportunity here is huge, consumer spend is going toward housing and everyone needs to stay somewhere. But it’s Kulveer and Zeus’ go-to-market strategy that is impressive” says Initialized co-founder and managing partner Garry Tan. “Zeus decided to start with corporate rentals, which we believe is the best go-to-market since it is the highest margin, and capital efficiency wins in a space with many competitors. Corporate needs are longer term, consistent and predictable, and partnering with Airbnb strengthens this approach as they expand to build a platform for every city.”
Zeus co-founder and CEO Kulveer Taggar
Zeus had previously raised a $2.5 million seed and then an $11.5 million Series A led by Initialized, as well as $10 million in debt to cover taking on properties in the San Francisco Bay, Los Angeles, New York, Seattle, and D.C. Now that it’s scaling up, Zeus could add a sizable debt facility to cover the risk of filling apartments with employees from clients like Brex, Disney, ServiceTitan, and Samsara.
Push-Button Housing
Instead of moving into a bland corporate housing block, struggling to find a place themselves, or ending up in expensive long-term Airbnbs, workers moving to new cities can go to Zeus. It takes over apartments, handles maintenance, and fills them with branded comforts like Parachute bedding and Helix mattresses that Zeus gets at bulk rates. The startup is betting that as workers move between jobs and cities more frequently, fewer will own furniture and instead look for furnished homes like those Zeus offers.
Thanks to the premium stays it provides, Zeus charge can clients a lucrative rate while Taggar claims his service is still about half the price of standard corporate housing. For property owners, Zeus makes it easy to get a consistent rent paycheck with none of the traditional landlord work. Zeus takes care of cleaning and key exchanges so owners don’t need to do any chores like if they were running an Airbnb. Its goal is to get the first renters in within 10 days of taking on a property.
The new funding will help Zeus expand to more neighborhoods and cities while retaining a focus on breadth within each market so clients have plenty of homes to pick from. The startup will be revamping its booking and invoicing tools for enterprise partners, and improving how it sources real estate. Meanwhile it will be investing in customer care to maintain its high 70s NPS scores so relocated workers brag to their colleagues about how nice their new place is.

Related posts

the-mandalorian-season-2-episode-7-recap:-mando-goes-undercover-–-bioreports

The Mandalorian season 2 episode 7 recap: Mando goes undercover – Bioreports

December 13, 2020
virgin-galactic-aborts-first-powered-flight-attempt-from-spaceport-america-–-bioreports

Virgin Galactic aborts first powered-flight attempt from Spaceport America – Bioreports

December 13, 2020

“Finding housing is stressful and time-consuming for both individuals and employers. As someone who has moved countries four times, I’ve lived through that tension” says Taggar. Zeus Living has built technology to remove complexity from housing, turning it into a service that enables a more mobile world.”
Taggar had gotten into the real estate business early, remortgaging his mom’s house to buy a condo in Mumbai to rent out. After moving to the US, he built and sold Y Combinator-backed auction tool Auctomatic with co-founder and future Stripe starter Patrick Collison. It was while working on NFC-triggered task launcher Tagstand that Taggar recognized the hassle of both finding new corporate housing and reliably renting out one’s home. With Uber, Stripe, and more startups growing huge by simplifying processes that move a lot of money around, he was inspired to do the same with Zeus Living.
The PropertyTech Wars
“Modern professionals travel more frequently, stay longer, and seek accommodations that feel like home. As more companies look to Airbnb for Work for extended-stay and relocation solutions, this segment remains a key focus for Airbnb,” says David Holyoke, Global Head of Airbnb For Work.
“We have great alignment with the Airbnb team in terms of serving the changing needs of business travelers that want the comforts of home when traveling for extended 30-day stays for work or a project” Taggar follows. Airbnb can help Zeus drive demand thanks to all its inbound traffic, while Zeus offers Airbnb more supply for customers seeking longer stays.
Zeus Living’s co-founders
Zeus’ biggest threat is that it could get overextended, misjudge demand, and end up on the hook to pay rent for two-year leases it can’t fill. And now with more funding, there will be added scrutiny regarding its margins, especially in the wake of the WeWork implosion.
Taggar recognizes these threats. “This is a business where we have to be focused on maximizing the gross profit we generate for the investments we make, with the least amount of risk. At Zeus Living, we’re continuously improving the ways we predict and secure demand.” He’s also building out teams on the ground in different markets to ensure regulatory compliance and push for more conducive laws around 30+ day rental stays.
Property tech has become a heated space, though, so Zeus will have heavy competition. There are traditional corporate housing providers, pure marketplaces that don’t deal with logistics, and direct competitors like $66 million-funded Domio, and juggernaut Sonder which has raised a whopping $360 million. Zeus might also see its model copied abroad before it can get there. Over time, landlords and real estate investment trusts like Blackstone could force Zeus, Sonder, and others to compete to pay them the most for leases, eating into all the startups’ margins.
At least with Airbnb as an investor, Zeus won’t have to fear a bitter battle with the tech giant over corporate housing. Instead, Airbnb could keep investing to coin off this adjacent market while listing Zeus properties, or potentially acquired the startup one day. For now though, Taggar just wants to prove startups can be accountable in the real world, acknowledging that taking over people’s homes is “a lot of responsibility! Our homes represent hundreds of millions of dollars of assets we manage and we take that very seriously.”

Previous Post

Zarif: Iran fully ready for prisoner swap, ball in US court

Next Post

Walmart apologizes for Christmas sweater with apparent drug reference

Next Post
Walmart apologizes for Christmas sweater with apparent drug reference

Walmart apologizes for Christmas sweater with apparent drug reference

Leave a Reply Cancel reply

Bioreports Editorials

delta-police-nabs-three-suspects,-pdp-chief-over-communal-clash
Editorials

Delta police nabs three suspects, PDP chief over communal clash

by Bioreports
December 13, 2020
0

By Elo Edremoda, Warri and Okungbowa Aiwerie, Asaba Three persons, including a People’s Democratic Party (PDP) ward chairman have been...

Read more
npc-kicks-off census-enumeration-exercise-in-katsina

NPC kicks off census enumeration exercise in Katsina

December 13, 2020
katsina-compiles-register-of-cbos,-csos-and-ngos

Katsina compiles register of CBOs, CSOs and NGOS

December 13, 2020
gunmen-kill-four,-injure-seven-in-benue

Gunmen kill four, injure seven in Benue

December 13, 2020
police-burnt-house,-abducted-two-friends-in-abia,-victim-tells-panel

Police burnt house, abducted two friends in Abia, victim tells panel

December 13, 2020

About Us

Hot news about happenings in NIGERIA generally with special focus on political developments and News around the world

Technology News

the-mandalorian-season-2-episode-7-recap:-mando-goes-undercover-–-bioreports
Virtual Reality

The Mandalorian season 2 episode 7 recap: Mando goes undercover – Bioreports

by Bioreports
December 13, 2020
0

Mando and Boba Fett (who's cleaned up his armor) make an excellent team, even if they aren't together much in...

Read more
virgin-galactic-aborts-first-powered-flight-attempt-from-spaceport-america-–-bioreports

Virgin Galactic aborts first powered-flight attempt from Spaceport America – Bioreports

December 13, 2020
9-great-reads-from-bioreports-this-week-–-bioreports

9 great reads from Bioreports this week – Bioreports

December 13, 2020
homepod-mini-vs-echo-dot-vs.-nest-mini:-picking-the-best-mini-smart-speaker-–-bioreports

HomePod Mini vs. Echo Dot vs. Nest Mini: Picking the best mini smart speaker – Bioreports

December 13, 2020
solar-eclipse-2020:-a-history-of-eclipses-and-bizarre-responses-to-them-–-bioreports

Solar eclipse 2020: A history of eclipses and bizarre responses to them – Bioreports

December 13, 2020

Business News

affirm-delays-its-ipo
Featured

Affirm Delays Its IPO

by Bioreports
December 13, 2020
0

Affirm Holdings Inc. is postponing its initial public offering, according to people familiar with the matter, the second company in...

Read more
pfizer-biontech-covid-19-vaccines-are-prepped-for-shipment

Pfizer-BioNTech Covid-19 Vaccines Are Prepped for Shipment

December 13, 2020
nfl-ratings-drop-leaves-networks-scrambling-to-make-advertisers-whole

NFL Ratings Drop Leaves Networks Scrambling to Make Advertisers Whole

December 13, 2020
astrazeneca-agrees-to-buy-alexion-for-$39-billion

AstraZeneca Agrees to Buy Alexion for $39 Billion

December 13, 2020
the-best-managed-companies-of-2020—and-how-they-got-that-way

The Best-Managed Companies of 2020—and How They Got That Way

December 13, 2020

Hearsay

see-how-36-states-in-nigeria-got-their-names,-some-were-named-after-rivers-(full-list)
hearsay

See how 36 states in Nigeria got their names, some were named after rivers (full list)

by Bioreports
January 18, 2021
0

Many Nigerians can mention the 36 states of the federation offhand in alphabetical order but just a few of them...

Read more
man-impresses-with-food-cooked-with-vegetables-from-his-garden-(photos)

Man impresses with food cooked with vegetables from his garden (photos)

January 18, 2021
adorable-photos-of-a-boy-looking-cute-with-his-birthmarks-go-viral

Adorable photos of a boy looking cute with his birthmarks go viral

January 18, 2021
see-how-this-little-girl-tried-to-beat-her-mother-in-dance-‘competition’-(video)

See how this little girl tried to beat her mother in dance ‘competition’ (video)

January 18, 2021
us-president-trump-reportedly-set-to-raise-n792bn-for-presidential-library

US President Trump Reportedly Set To Raise N792bn for Presidential Library

January 18, 2021

© 2020 Bioreports - Hot news about happenings in NIGERIA generally with special focus on political developments and News around the world.

No Result
View All Result
  • HOME
  • NEWS
  • POLITICS
  • SPORTS
  • HEALTH
  • BUSINESS
  • ENTERTAINMENT
    • Fashion
    • Fitness
    • Food
    • Travel

© 2020 Bioreports - Hot news about happenings in NIGERIA generally with special focus on political developments and News around the world.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In