Real estate management startup Bungalow has raised $64m through a mixture of debt and equity.
Of the newly deployed funds, $14m was invested through a Series A round which was led by Khosla Ventures, Atomic VC, Founders Fund, Cherubic Ventures, and Wing Ventures. The remaining $50m was supplied through a debt facility, from an unnamed backer.
As part of the deal, Opendoor founder Keith Rabois will join the Bungalow board of directors.
Bungalow provides a real estate platform which helps to connect roommates with rental homes. The company matches roommates, supports the running of the house and maintenance, and provides a streamlined rent and utilities payment service.
The platform, which launched in 2017, is used by 750 residents across The Bay Area, Los Angeles, San Diego, New York and Seattle. Alongside this new round of funding, the company has revealed two new markets available through the platform, Portland and Washington D.C.
The company is expecting to enter 12 major cities by the end of the year, and will move on to international expansion during 2019.
Khosla Ventures managing director Keith Rabois said, “One major challenge of today’s residential real estate market is the lack of desirable and accessible rental options for young people in urban areas, a problem that will become more pervasive in years to come.
“Bungalow is taking a full-stack approach that uniquely addresses the rapidly evolving needs of both renters and homeowners, while creating economic value by more effectively utilizing housing inventory.”
Last week, Khosla Venture took part in the $22.7m Series A round of cryptocurrency trading platform SFOX. The company is a prime dealer that supplies high-volume traders and institutional investors higher returns through optimised price execution.
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