Zeus Living, a market leader in the corporate housing space, just received a $55 million Series B investment from Airbnb, among others.
The move comes as Airbnb is looking to grow beyond vacation rentals, as reported by TechCrunch. The strategic partnership will see Zeus Living begin listing their corporate housing spaces on the Airbnb app.
Zeus Living has grown exponentially since they began renting homes to relocated workers four years ago. Since that time, they’ve amassed a $100 million revenue run rate, boosting that revenue 300% in 2019.
The company makes money by charging landlords one free month of usage, then marking up the rent charged to their customers. For instance, it could rent out a $4,000 per month home for $5,000, plus the extra month, to earn $16,000 in a year.
For the customer, Zeus represents an easy way to move to a city, as the company handles maintenance and furnishes the properties with amenities, such as Parachute bedding and Helix mattresses.
“I fundamentally believe that a lot of human potential is bound by location,” Zeus Living CEO and co-founder Kulveer Taggar said. “At Zeus, we’re deeply committed to making it easier for people to live where opportunity takes them.”
In addition to Airbnb, additional funding was supplied by Comcast, CEAS Investments and TI Platform Management, plus existing investors Alumni Ventures Group, Initialized Capital, NFX and Spike Ventures. The funding comes at a $205 million post-money valuation.
Property tech has become a heated space, which should give Zeus Living some competition moving forward. Domio has raised $66 million and juggernaut Sonder has raised an astounding $360 million, both of whom offer forms of corporate housing. There is also the risk of overseas competitors copying the company’s model before it can travel abroad, though a partnership with Airbnb does help mitigate that risk.
Additionally, landlords and real estate investment trusts, such as Blackstone, could begin charging Zeus Living more for leases, thus eating into margins.
photo credit: zeus living