Blueground, a tech-enabled home leasing company, announced its latest funding round totals $20 million and includes the participation of New York City-based entrepreneur Kevin Ryan, who will also join the company’s Board of Directors.
Blueground, which leases properties and upgrades them, has raised a total of $28 million to date and counts venture capital funds VentureFriends, Endeavor Catalyst and Jabbar Internet Group among its investors.
The company has tripled its annual revenue on a yearly basis over the last three years, while compiling a portfolio of more than 1,700 apartments in New York, San Francisco, Los Angeles, Boston, Washington, D.C., Chicago, Dubai, Istanbul and Athens.
Blueground is targeting individual and business customers moving or traveling to a new city for a month, a year or longer.
“Renting an apartment can be a tedious and time-consuming process. You need to deal with a number of frustrating activities, from filling out paperwork to furnishing the apartment. With Blueground the renting experience becomes efficient, streamlined and seamless. And for business guests, we’re providing a more spacious, lower cost alternative to a hotel,” said Alex Chatzieleftheriou, CEO and co-founder of Blueground. “This capital will move us closer to our goal of leasing 50,000 apartments globally within the next five years.”
In the U.S., Blueground leases from property owners and management companies such as Related Rentals, Stonehenge, UDR and Pinnacle Living.
The company typically leases numerous apartments before they hit the market, with a goal of holding them for many years, ensuring landlords steady cash flow and financing solutions that maximize a property’s annual yield.
The company then offers the properties with premium furnishings, high-speed WiFi, luxury linens, high-end gadgets and modern designs, to vetted renters for 30 days or longer. The average length of a stay is six months.
Once the online reservation is made, guests have access to ongoing support and information through the Blueground app, where they can arrange housekeeping, request maintenance, or move to another apartment.