Co-living company Bungalow raises $14M in Series A

Startup also lands $50M debt facility

TRD New York /
Aug.August 23, 2018 09:00 AM

(Credit: bungalow.com)

Master lease co-living startup Bungalow raised $14 million in a Series A funding round, the company said Thursday.

Khosla Ventures, Atomic VC, Founders Fund, Cherubic Ventures, and Wing Venture Capital led the round. Separately, Bungalow also secured a $50 million debt facility from an unnamed lender.

Bungalow master-leases houses and small multifamily properties, furnishes them, and sublets rooms to customers willing to share a home with other people. The company also takes care of common spaces, cleaning and WiFi. Most of its properties have three to seven bedrooms, and customers are expected to commit for at least four months.

Founded in early 2017 by Andrew Collins and Uber veteran Justin McCarty, the San Francisco-based company currently manages several hundred apartments and homes. Around 20 percent its units are in New York City.

The company hopes to appeal to landlords by leasing properties for several years and maintaining them on a regular basis.

Unlike its peers Common, Ollie and WeLive, Bungalow shies away from major multifamily properties and new developments. It also markets itself as a cheaper alternative, with rents for a bedroom ranging from $800 to $1,700 per month.

Bungalow rejects the co-living label, referring to itself as a “residential real estate platform.” McCarty said the company doesn’t claim to offer a completely new way of living. Instead, it wants to make an existing one more efficient. “Living with roommates is working really well for a lot of people, and we’re trying to make that easier,” he said.

Bungalow says it plans to use the new venture capital to invest in its research and design, and the credit facility to open new locations. The company has properties in New York, Los Angeles, the Bay area, San Diego and Seattle, and is expanding into Portland and Washington, D.C. By 2019, it hopes to expand to other countries.


Related Articles

arrow_forward_ios
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jennifer Lopez and Alex Rodriguez with their Malibu beach house (Getty; Courtesy Compass)

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M
State Sens. James Gaughran, Brian Kavanagh and Kevin Thomas (NY Gov; Getty)

State Senate hearing confronts racial bias by brokers

State Senate hearing confronts racial bias by brokers
State Sen. Julia Salazar, Barbara Corcoran and Gov. Andrew Cuomo (Getty)

State says Barbara Corcoran is on board with broker-fee ban

State says Barbara Corcoran is on board with broker-fee ban
arrow_forward_ios

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

Loading...