Roomi lays off more than half of its workforce after funding falls through: report

The 3-year-old startup has acquired four companies and recently launched in Europe

New York Weekend Edition /
Nov.November 04, 2018 11:23 AM

Ajay Yadav (Credit: Twitter, Pixabay)

Roomi, an online roommate finder that clinched market share by snatching up its competitors, is laying off more than half of its staff after a failed funding round.

The layoffs were announced Friday in an update to a CNN profile of Roomi’s founder Ajay Yadav and the startup.

The company said a “round of funding it had anticipated fell through,” which meant 40 to 50 layoffs of Roomi’s 63 employees. Yadav told CNN that “it took us all by surprise,” but said Roomi will continue its operations. Yadav also stated that a meeting with Roomi’s board and investors “about the best way to move forward” would be held. The timing of the layoffs and meeting is unclear. Yadav and Roomi did not immediately respond to request for comment.

Roomi has raised $17 million since its founding in 2015. Last November, the company raised $11 million in a Series A round led by Atami Capital. Other notable investors included Citigroup executive Dan Keegan, former Trulia president Paul Levine and Global Switch CEO John Corcoran.

The company has also steadily acquired competitors beginning in 2016 with Room Ring and Room.me. In March, Roomi acquired a third competitor, Symbi.

Yadav told The Real Deal at the time of the latter acquisition that he believed one company would ultimately dominate the roommate listing space, drawing a comparison with Facebook’s stronghold on social media. “One leader needs to evolve,” he said said. “I think we have a clear chance of making it.” At the time Roomi boasted 1.1 million registered users and 280,000 room listings.

Months later in May, the company began an international expansion by launching its app in London and acquiring the platform Study Abroad Apartments. [CNN] —Erin Hudson


Related Articles

arrow_forward_ios
Eric Gordon
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
Kairos’ founder Ankur Jain (Getty)
Startup charts a (long) path toward homeownership
Startup charts a (long) path toward homeownership
Opendoor CEO Eric Wu (Getty, Opendoor)
Opendoor expands to Miami, 5 additional markets
Opendoor expands to Miami, 5 additional markets
Meet the 20-somethings funneling their crypto millions into real estate
Meet the 20-somethings funneling their crypto millions into real estate
Meet the 20-somethings funneling their crypto millions into real estate
Last year more people relocated to ZIP codes with lower home values and more space. (Getty)
Long-distance movers found cheaper and larger homes in 2020
Long-distance movers found cheaper and larger homes in 2020
Blooma founder Shayne Skaff (LinkedIn, iStock)
CRE fintech startup Blooma nabs $15M in funding
CRE fintech startup Blooma nabs $15M in funding
arrow_forward_ios

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

Loading...