PropTech Funding Roundup: OYO, Rent2Cash, Stake, Atlas, Badi, Findigs, Sonder, ResVR

Cheques are being signed. Here are the notable investments we've spotted in the past couple of weeks...

OYO close to raising $125 million, slashing its valuation—and defers IPO

TechCrunch has reported that the Indian budget hospitality marketplace OYO is in the closing stages of a $125 million investment round that will value the business at approximately $2.5 billion—which would significantly devalue the company from a previous valuation of $10 billion (in 2019).

OYO provides hotel accommodation in 800 cities across 80 countries, with the company's website claiming 42 people check into an OYO every ten seconds. The company planned on floating in 2021 and 2023 but had both filings rejected by the Indian Securities and Exchange Board. The firm now says it has deferred its IPO until 2026.

A spokesperson from InCred Wealth, a leading investment partner in India, says that the company's new valuation and its profitability bode well for flotation:

"We genuinely feel that this asset makes a lot of sense today. Being profitable and [at a] 70% discount to the previous valuation. Listing expected in 18-24 months."

OYO recorded after-profit taxes of circa 10 million rupees (USD 120,000) in FY24, and the firm's eighth consecutive quarter of EBITDA growth.

Findigs secures $27 million in Series B funding

The NYC-based proptech startup Findigs has raised $27 million in Series B funding from a round led by Nyca Partners.

Other participants include existing investors RPM Ventures, Streamlined Ventures, Expa Ventures, Activant Capital, Colle Capital, and Frontier Venture Capital.

Findigs is a property technology company that simplifies rental screening and leasing decisions. It says it will use the funds to expand its screening automation service, grow its team, and increase platform and data sophistication.

Dubai-based Stake raises $14M Series A round

Fractional ownership proptech startup Stake is set to expand into Saudi Arabia in 2024 after securing a $14 million Series A funding round.

Existing investor Middle East Venture Partners led the round. Other investors include Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund. The Series A round follows 2022's $8 million pre-seed round.

Manar Mahamassani, co-founder and co-CEO at Stake, said:

"KSA is forecast to grow by 6% in 2025, making it one of the fastest growing G20 economies in the world. We want to give both our local and international users the opportunity to invest early and participate in that growth.

"This raise marks a significant moment in our journey, as we expand into this dynamic new market and partner with amazing new shareholders, including some of the strongest institutional and sovereign investors in the region, to advance our mission of empowering everyone to own and build wealth through real estate."

Founded in 2021, Stake facilitates fractional ownership investments and claims to have over half a million users and completed property transactions worth approximately $98 million.

Beleaguered short-term rentals operator Sonder gets $10M cash injection

The San Francisco-based short-term rentals specialist Sonder has revealed that it has received a $10M cash injection from investors as it plans to exit 80 buildings in its home market and renegotiate the rent in a further 25.

Sonder, which jumped on the SPAC train to go public in 2022, leases and operates short-term rental properties. It has faced plenty of challenges in its time including pandemic-induced lawsuits, a Nasdaq deficiency notice for missing reports and a loss o 98% of its share price since its floatation.

More recently Sonder also had to lay off around 17% of its workforce in February.

Badi raises $7.5 million in equity and debt

Badi has secured a combined €7 million in equity and debt as it continues its recovery from near-bankruptcy in 2022.

The room rentals platform, based in Barcelona, raised €5 million in equity from venture capital and private equity firm Barlon Capital, and a further €2 million in debt in the form of a loan from Banco Santander.

Since its foundation in 2015, Badi has faced financial struggles despite significant backing—in excess of €45 million—and has revamped its offering from room search to fully-renovated properties in managed properties with its secondary product, BadiPlus. The startup has also expanded across Europe and the United States, with rooms available in several states.

Badi says it is also preparing to launch its tourist-friendly product, Badi Gateway.

Rent payments rewards startup Atlas raises $1.6 million in pre-seed funding

Atlas, a startup that offers payment and property management software for landlords, has raised $1.6 million in pre-seed funding.

The round was led by Better Tomorrow Ventures (BTV), which has invested in 50+ pre-seed and seed-stage fintechs globally.

Other investors include ON Deck, Orange DAO, Casey Winters, Deon Nicholas, Common Metal and Blockchain Founders Fund.

Atlas offers a digital wallet to tenants, who can pay rent and then receive cashback rewards. According to the company's website, Atlas offers 2% interest for rent wallets and also allows tenants to defer rental payments in favour of instalments

Meanwhile, landlords have access to AI-powered property management software, including a chatbot that communicates directly with tenants on their behalf, and schedules contractors.

Pricing is offered on a three-tier system, from 'Free' to 'Gold'.

Canadian Proptech ResVR raises CAD 1.7 million

ResVR, the Canadian proptech that enables homebuilders and developers to sell more upgrades through a visualization platform, has raised $1.24 million in pre-seed and seed funding, plus $250k in non-dilutive capital from Alberta Innovates and NRC-IRAP.

The pre-seed and seed funding round was led by Inverted Ventures and Weave VC, with further participation from Bluesky Equity, InRoad Ventures, ThresholdImpact, Startup TNT and Canadian angel investors.

ResVR develops 3D visualization software for home builders that highlights options and upgrades for each floor plan, with plans to launch a product line for designing home exteriors.

Italian startup Rent2Cash raises €700k in equity funding

Rent2Cash has raised €700,000 in equity funding for its rental solutions platform. The startup, based in Rome, streamlines rentals by giving landlords liquidity worth up to three years of rent in advance, without interest.

Rent2Cash uses an algorithm called 'Vault' to design personalised rental advances for landlords based on 50 criteria. The company says it will also explore international expansion to markets including Germany, Spain and France in the near future.