Zumper buys PadMapper in deal worth nearly $10M

Startups join forces to evade Zillow

New York /
Feb.February 25, 2016 03:29 PM

In the high-stakes game of apartment hunting, startups Zumper and PadMapper are joining forces, the companies announced Thursday.

In a deal worth nearly $10 million, San Francisco-based Zumper, which connects brokers and owners with potential renters, has agreed to buy Padmapper, the popular map-based rental search tool. It’s a move that will create what the companies are calling the biggest rental startup nationwide – or at least one that will compete with Zillow, a main rival that’s been on an acquisition spree.

“It was get bought or partner up and do something,” Zumper CEO Anthemos Georgiades told Forbes. Eric DeMenthon, CEO of PadMapper, added: “It made sense to join forces instead of getting eaten up.”

Earlier this month, Seattle-based Zillow acquired New York City rental platform Naked Apartments for $13 million in cash.

The two companies have focused on apartment rentals but both plan to develop a platform that bridges the entire real estate process, competing more directly with Zillow. Zumper raised money to fund the acquisition and plans to raise a large series B in the summer, Forbes reported.

Zumper had 4 million monthly visits in January, up from 50,000 monthly visits in 2014. It’s projecting 9 million monthly visits by this summer, and is on track to rake in $5 million in revenue this year.

The two companies bring starkly different pedigrees to the joint effort.

PadMapper, which launched in 2009, became popular with college students and recent grads via word of mouth. DeMenthon adamantly resisted investors’ advances in order to maintain control of the company.

Zumper, which launched in 2012, targets a slightly older demographic. The company, which has a small office in New York City, has raised more than $20 million venture capital from investors including Goodwater Capital, Kleiner Perkins Caufield & Byers and Andreessen Horowitz and others. [Forbes] – E.B. Solomont


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Placeholder image
Zillow to pay $50M for StreetEasy
Zillow to pay $50M for StreetEasy
(iStock)
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
How long does it take to lease an affordable housing project? Too long
Red tape keeping affordable units empty for 15 months
Red tape keeping affordable units empty for 15 months
Inventory is lighting a fire under rents (Getty)
Eviction bans squeezed supply, bringing rents to boil: report
Eviction bans squeezed supply, bringing rents to boil: report
Block Renovation co-founder Koda Wang (Block Renovation, LinkedIn)
Home improvement startup Block Renovation taking platform national
Home improvement startup Block Renovation taking platform national
Gov. Kathy Hochul, CHIP Executive Director Jay Martin, and RSA President Joseph Strasburg (Getty, Strasburg via Jeffersons Siegel)
Fudging the numbers? Landlords say NY gamed survey to save rent stabilization
Fudging the numbers? Landlords say NY gamed survey to save rent stabilization
CompStak's Michael Mandel and Vadim Belobrovka (CompStak, iStock)
CRE data crowdsourcer CompStak raises $50M
CRE data crowdsourcer CompStak raises $50M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...