Brazil startup Rentbrella focused on European expansion

RIO DE JANEIRO, BRAZIL – Rentbrella was founded in 2018 in São Paulo, a city known for heavy summer rains in late afternoon. Its app allows customers to borrow an umbrella from an automated kiosk and use it free of charge for 24 hours.

After 24 hours and in unreturned, they are charged US$2 for the second day and another US$2 for the third day. Once the total charged reaches US$16, users may keep the umbrella.

Freddy Marcos, one of the company’s three co-founders, said that Rentbrella aims to expand to at least 10 other countries in Europe in the next 2 years.

The company expanded in New York’s Manhattan and Brooklyn in October with 35 kiosks, each with 100 umbrellas, under agreements with real estate companies such as WeWork (WE.N), Tishman Speyer (TSIB.O) and Beacon Capital (CCEAX.O). Rentbrella plans to add 100 more stations throughout the United States this year.

“The best thing about it is that it is free,” said co-founder Ary Krivopisk, adding that Rentbrella aims to expand into London early this year.

The company plans to generate revenue from advertisements printed on the umbrellas, although it has yet to sign any such deals in New York.

The startup, which has so far raised US$7 million from undisclosed investors, has around 40,000 umbrellas available in São Paulo.

An initial public offering is on its radar although not in the short term, Marcos said.

“We have much to expand in dozens of countries, but it’s something on our radar in the future,” he said on a potential IPO.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.