RIO DE JANEIRO, BRAZIL – Investments have been reduced, and layoffs have increased in some Brazilian startups. QuintoAndar has been no exception and has reduced its workforce by 4%.
But these layoffs do not mean that the company has stopped pursuing new projects. On Tuesday, June 21, the startup announced that it would take its business model to Mexico.
QuintoAndar has a platform for buying, selling, and leasing real estate. In leasing, some of its differentials are the absence of a guarantor, contracts signed without bond, the guarantee of payment to the tenant even in case of delay or non-payment, and protection against possible damage to the property.
In Brazil, the startup has R$90 billion (US$18 billion) in assets under management. There are 175,000 active rental contracts spread across 75 cities. In terms of real estate sales, more than 1,000 properties are sold monthly.
The Mexican expansion was announced in August 2021, after the unicorn raised an investment of US$120 million. The country was chosen because of the similarity between the two real estate markets, both in terms of size and the issues faced by tenants and lessees.
“We are starting to serve the Brazilian market, but we also look at other countries with similar pains. In Mexico, the information to find a property is also fragmented, just as it is difficult for the tenant to process guarantees and for the landlord to be sure of the payment of rent and the conservation of his property,” says Gabriel Braga, co-founder of QuintoAndar.
Another step was taken in December of the same year when QuintoAndar acquired the Navent Group, focused on real estate solutions and the owner of brands such as ImovelWeb.
In addition to Brazil, Navent operates in countries such as Argentina, Ecuador, Panama, Peru, and Mexico.
Since this acquisition, QuintoAndar has taken over the operation of the Mexican classified ads site Inmuebles24. Now, QuintoAndar will enter with its own business model through the newly created Benvi brand.
Inmuebles24 will serve as an advertising channel for Benvi, as the new brand will also place its rental properties within the classifieds site.
The app is already receiving registrations from Mexican property owners. In the next few days, it should go live for prospective tenants.
The Benvi brand can be used for other Latin American markets.
“Mexico greatly expands our operations market and opens the way to other countries. But for now, we are focused on making our model work in our first country beyond our origin. The next few months will be dedicated to making the client, agent, real estate, and other market players’ experience round. Only then will we accelerate,” Braga says.
One plan is to allow real estate partners to post their properties on the site and offer Benvi rentals to their clients – the model already works here, under the name “Rede QuintoAndar.”
Venture capitalists insist that startups must now focus on the essentials: the core activities that actually bring in revenue. Starting an operation in a new country seems to go against advice. But for Braga, the Mexican expansion represents an expansion of QuintoAndar’s core business.
“The expansion strengthens our rental product with a unique proposition. It is an opportunity that has been studied for some time, and how we do it is also important. We have a very thoughtful investment, focusing on understanding the client and validating the assumptions.
“The market encourages this type of operation, and that is how we pursue this project. We will invest gradually. We are not going to invest money in marketing to accelerate an operation that is not mature.”
With information from InfoMoney